NFO Alert: Mahindra Manulife Mutual Fund launches Mahindra Manulife Multi Asset Allocation Fund.Everything you need to know

Mahindra Manulife Mutual Fund has announced the launch of Mahindra Manulife Multi Asset Allocation Fund. The scheme opens for public recruitment on 20 February 2024 and closes on 5 March 2024. The scheme will reopen for continued sales and buybacks on 15 March 2024.

What kind of mutual fund scheme is this?

This is an open-ended scheme that invests in stocks, bonds, gold/silver ETFs, and exchange-traded commodity derivatives. This product is suitable for investors seeking:

• Enhance the value of capital while generating long-term returns
• Investments across stocks and equity-related instruments, fixed income and money market instruments, gold/silver ETF units, and exchange-traded commodity derivatives.

What is the main purpose of investing in this fund?

The scheme’s objective is to achieve a balance between risk and reward by allocating investments across specified asset classes. Additionally, along with the benefits of indexing, investors are also provided with the benefits of long-term capital gains (LTCG) taxation.

Highlighting the importance of this recruitment, Mr. Anthony Heredia, MD & CEO, Mahindra Manulife Investment Management, said: The market always presents challenges as well as opportunities. Careful diversification between asset classes is one of the best ways to maximize opportunity without losing sight of risk. Mahindra Manulife Multi Asset Allocation Fund offers investors the opportunity to access multiple asset classes within one product including stocks, bonds and gold and silver ETFs. ”

How can I invest in this system?

Investors can invest under this scheme with minimum investment amount. INR500 per plan/option, multiples of Re 1. There is no investment limit.

Under normal circumstances, the scheme’s asset allocation would be as follows:

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such multi-asset funds, allowing willing investors to take advantage of returns comparable to the total return of securities in this particular index. . These include:

How is the performance of this scheme benchmarked?

The performance of the scheme will be benchmarked against 45% NIFTY500 TRI + 40% – CRISIL Composite Bond Index + 10% – Domestic Spot Price + 5% Domestic Silver Price (Tier 1 Benchmark).

A comparison of the performance of this scheme is made against the previously mentioned benchmarks. However, due to inherent differences in portfolio construction, a scheme’s performance may not be strictly comparable to that of its benchmark. The benchmark is a composite of asset classes in which the scheme seeks to invest. The weights are consistent with the expected long-term range of average holdings in the portfolio for each asset class.

Are there any ingress or egress loads to this scheme?

This scheme does not include an ‘entry load’. This means that investors do not have to pay anything to park their profits in this scheme. The ‘exit load’ charged is calculated as follows:

• An exit load of 0.5% will be payable if the units are redeemed/exchanged within a maximum of 3 months from the date of allotment.
• Zero if the units are redeemed/exchanged after 3 months from the date of allotment.

Who will manage this plan?

Renjith Sivaram Radhakrishnan will oversee equity management, Rahul Pal will handle debt and Pranav Nithh Patel will manage the scheme’s dedicated overseas investments.

Does the Fund involve any inherent risks?

As detailed in the scheme information document, the scheme contains ‘high risk’ and is ideal for investors who want to understand that their principal is only exposed to high risk. However, investors should consult their financial advisor if they have any doubts as to whether the risk is high. The product is suitable for them.