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Mahindra Unnnati Emerging Business Yojna: A Mid Cap Fund to Watch out For

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Mahindra Asset Management Company is finally making its foray into the mutual fund industry, and is bringing forth a new fund offer (NFO) called Mahindra Unnnati Emerging Business Yojna, a mid-cap scheme. Interested investors will be able to subscribe to this scheme from the 8th of January, this year. Subscription, however, closes on the 22nd of January. The fund will reopen for subscription from the 6th of next month i.e. February, 2018.

Some of the most important features of Mahindra Unnnati Emerging Business Yojna are as follows -

  • It’s an open-ended fund.

  • There is no entry load for this scheme.

  • If you sell your holdings before one year, you might have to pay 1% of exit load.

  • The money will remain parked in different mid cap companies across the country.

  • If you want to invest in this scheme, you will have to start with a minimum amount of INR 1000, and then multiples of INR 1 thereof. Please note that there is no maximum limit to investing in this scheme.

  • The plans offered under this scheme are regular and direct. You will also have growth and dividend options to benefit from.

  • Ratish Varier is the fund manager of this scheme.

  • The benchmark for this scheme will be offered by S&P BSE Midcap Index.

Around 65% of the total corpus will remain invested in emerging companies belonging to the mid-cap category, and the remaining 35% will be in a mix of small-cap and large cap emerging companies. The choice of stocks will be made mostly from emerging companies that are growing into specific businesses. The scheme is expected to offer market-beating returns in the 4 or 5 years to come.

Mahindra Unnnati Emerging Business Yojna is ideal for investors who are -

  • Looking to capitalise on the equity market.

  • Looking for capital appreciation over the long-term horizon.

  • Having lower risk appetite, and are looking for long term returns that are high-risk adjusted.

What is the investment objective of the scheme?

The primary aim of the scheme is to ensure long term capital appreciation in addition to offering growth opportunities over the long-term horizon. To realise this objective, the scheme makes investments in equities and equity linked securities and derivatives chiefly from the mid cap companies.

Is there a minimum application amount for the scheme?

Yes, it is INR 1000 and in multiples of INR 1, thereafter.

Is there a minimum additional purchase amount?

Yes, it is INR 1000 and in multiples of INR 1, thereafter.

Is there a minimum amount for switch-outs or redemption?

Yes, it is INR 1000 or account balance or 100 units, whichever out of these is lowest.

What is the investment strategy that the scheme is going to employ?

  • The fund manager will follow an active management style.

  • The fund will follow a bottom up approach while picking stocks. Stocks will be picked from various sectors depending on the industry and the long-term growth potential of the businesses.

  • The scheme aims at creating an investment portfolio that is able to capitalise on the growth opportunities in the country. This, the scheme endeavours to realise by making investment in companies that have the potential to grow considerably big in their respective segments.

Mahindra AMC, that began rolling in 2016’s July, now aspires to grow into the biggest investment house in the coming decade for a range of investors, mostly those belonging to rural and semi urban areas. The company already has around 50 offices scattered across the country. But their primary focus will be on semi urban and rural pockets of India.

What has driven the company to focus on the rural areas is the fact that people in the countryside earn seasonally and hold money often in lump sums. Due to lack of investment knowledge, they fail to generate good returns from the money they hold. Mahindra and Mahindra Financial Services Limited (M&MFSL) centres will facilitate the company’s penetration into rural areas.

The scheme Mahindra Unnnati Emerging Business Yojna looks quite promising as of now. But for a deeper insight and better understanding of the scheme and its suitability to your financial goals, it’s advisable that you seek assistance from your financial advisor.




Mr. Ajay Kumar Jain, M.Sc, Chief Managing Director
Being the Chairman cum Chief 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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