MUMBAI: Parmerica Mutual Fund is to launch an income scheme called Pramerica Dynamic Monthly Income Plan, an open ended scheme.
NFO Period: March 8, 2011 to March 22, 2011
Investment Objective: The fund seeks to generate regular returns through investment in debt and money market instruments and to generate capital appreciation by investing in equity and equity related instruments.
Asset Allocation: The scheme would allocate 70 to 95 per cent of assets in fixed income securities with low to medium risk profile. It would further allocate 5 to 30 per cent of assets in equity and equity related instruments with high risk profile.
Benchmark Index: CRISIL MIP Blended Index
Fund Managers: Mahendra Jajoo, Executive Director & CIO - Fixed Income and Ravi Gopalakrishnan, Executive Director & CIO - Equity
Target Investors: The fund is targeted at all customer segments be it HNIs, retired pensioners, young investors, etc. “Any investor who wants his investment to generate inflation beating returns should invest in this fund,” says a company spokesperson.
How the fund is different from other MIPs in market: There are typically two types of Monthly Income Plans (MIP) available; one with up to 15% exposure to equities (conservative MIP) and the other which has 25-30% exposure to equities (aggressive MIP). In a bull market, aggressive MIP will perform better than the conservative one and in a bear market, the opposite will happen. Pramerica Dynamic Monthly Income Fund claims that by varying the equity exposure between 5%-30% depending on market outlook, it would be able to generate optimal returns.
What need does the fund seek to fulfil: To generate inflation beating returns. The fund aims to fulfil this need by marrying the stability of debt and the compounding power of equity through Pramerica Dynamic Monthly Income Fund.
Distribution Strategy: Pramerica Dynamic Monthly Income Fund is being offered across more than 120 centres across the country. It is being distributed through a mix of IFAs and national distributors.
Annual Expense: 2.25 per cent
Exit Load: The scheme will charge 1 per cent as exit load if units are redeemed within 365 days from the date of allotment.
Registrar: Karvy
