Mumbai: L&T Mutual Fund announced the launch of its MIP – Wealth Builder Fund.
NFO Period: September 27, 2011 to October 11, 2011
Investment mandate: The fund is an income scheme with a debt exposure of 70 – 100% and equity exposure can be up to 30%.
Mr N Sivaraman, President L&T Finance Holdings Limited says, “In the current market scenario where the risk of rising interest rates has increased and global markets seem to have been volatile, we need a product that could offer risk adjusted returns and serve as an alternative under fixed income products.”
Fixed income allocation of the scheme could be invested in CDs, CPs government securities, money markets and other debt instruments which can generate returns while moderating credit and interest rate risk.
Fund suitability: Ved Prakash Chaturvedi, CEO – Capital Markets & Investment Management Group, L&T says, “With the increasing focus on client benefit and long term product performance and high standing of governance, we believe that L&T MIP – Wealth Builder Fund is the right product in the current market environment for our investors.”
Target Investors: The scheme is suited for those investors who want to take advantage of the interest rate movement and the opportunity of current equity markets.
Distribution: The fund will be distributed through IFAs, stock exchange platforms, private banks and national level distributors. The fund would be available in 56 cities.
Exit load: It carries a 1 per cent exit load if redeemed within one year from the date of allotment.
Minimum Subscription: For monthly dividend option and quarterly dividend option the minimum subscription is Rs. 10,000 and for growth option it is Rs. 5,000. The scheme also offers SIP facility with a minimum amount of Rs. 1000 per application.
Benchmark: Crisil MIP blended fund index
Existing MIP Schemes in MF industry: Presently there are 59 (open-ended) MIP schemes in the market managing assets worth Rs 28011 crore.
