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Best NFO for Rural Sector in 2018 - Mahindra Rural Bharat And Consumption Yojana (Equity)

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Mahindra Mutual Fund is launching a new open-ended equity fund scheme ‘Mahindra Rural Bharat and Consumption Yojana’ based on the rural India theme, for those investors who wish to predominantly invest for Long term capital appreciation by investing predominantly in equity and equity related securities including derivatives of entities engaged in and/ or are expected to benefit from the growth in rural India. This new fund offer will open for the investor from 19th October 2018 & will close on November 02, 2018.

WHO IS THIS FOR?

This new fund offer is an ideal equity fund scheme for investors having a very high risk profile and looking for diversification of their existing portfolio. This scheme will be an ideal choice for those investors who’re seeking for long term capital appreciation. If you are an investor who is willing to take a high risk in order to receive good returns, then you can choose this fund because it has excellent potential and ability to give great dividends to an investor.

Also Read – What are Equity Mutual Funds?

INVESTMENT OBJECTIVE

The investment objective of the Scheme is to provide long-term capital appreciation by investing predominantly in equity and equity related instruments of entities engaged in and/ or expected to benefit from the growth in rural India. All the investments by the Mutual Fund under the scheme shall be guided by investment restrictions as specified in SEBI (Mutual Funds) Regulations, 1996.

RISK MITIGATION FACTOR

Risk is an integrated aspect of every investment function which needs to be adequately managed to achieve a financial objective. Like other schemes, this equity scheme will also require a disciplined approach to risk management. It is in this scheme where the risk controlling process lower risk factors by diversifying the portfolio. Such diversification will play a significant role in attaining the desired level of consistency in returns.

INVESTMENT STRATEGY

The Scheme would endeavor to generate capital appreciation by investing in entities and businesses that are engaged in and/or expected to benefit from the structural shift and growth in Rural India. This would include several sectors that are likely to be benefited over a longer term due to improvement in per capita income of rural India and various structural reform initiatives such as the soil card/crop insurance/higher MSP/e-Mandi etc.

Indicative list of business activities considered under Rural India includes (Investible sectors):

  • Farm Sector

  • Rural Infrastructure

  • Consumption

  • Financial Services

PLAN AND OPTIONS

The Scheme shall offer two plans viz. Regular Plan and Direct Plan with a common portfolio and separate NAVs. Direct Plan is only for investors who purchase /subscribe Units in the Scheme directly with the Fund and is not available for investors who route their investments through a Distributor.

Each Plan offers two Options, viz., (i) Growth Option; and (ii) Dividend Option.

Dividend Option will have (i) Dividend Payout; and (ii) Dividend Reinvestment facility.

Investors should indicate the plan/option for which Subscription is made by indicating the choice in the appropriate box provided for this purpose in the application form.

ASSET ALLOCATION

The Asset Allocation pattern of the scheme under normal circumstances would be as under:-

Image for includes derivatives instruments to the extent of 50% of the Net Assets of the scheme

Mahindra is launching this NFO with minimum purchase/ repurchase amount of Rs 1000 or multiples of Re 1 thereafter & redemption amount of Rs 1,000 or 100 unit or account balance whichever is lower for investor portfolio. Also, the minimum SIP amount assigned by the company for investors is Rs 500 monthly and Rs 1500 on a quarterly basis.

CONCLUSION

Mahindra Rural Bharat and Consumption Yojana is suitable for investors seeking to acquire long term capital appreciation by investing in equity and equity related instruments. It can be considered as an alternative to traditional investments like Bank FDs over a medium term. However, it is better for an investor to first consult about this scheme with his financial advisor. You can contact Swaraj Wealth for investment and to get free advice for fund selection.




Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.

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