Moneycontrol
Feb 09, 2018 12:56 PM IST | Source: Moneycontrol.com

Mirae Asset MF to modify features of its Prudence Fund from March 14

The scheme will be categorised as an open-ended hybrid scheme investing predominantly in equity and equity-related instruments

Moneycontrol News @moneycontrolcom

Mirae Asset Mutual Fund will revise classification of Mirae Asset Prudence Fund, in accordance to new guidelines by the Securities and Exchange Board of India, the fund house said in a notice.

The scheme will be categorised as an open-ended hybrid scheme investing predominantly in equity and equity-related instruments, as against its current category of an open-ended equity-oriented asset allocation scheme. These changes will be with effect from March 14.

Consequently, the scheme will be renamed as Mirae Asset Hybrid – Equity Fund, which will be benchmarked against CRISIL Hybrid 35+65 Aggressive Index.

At present, the performance of the scheme is benchmarked against CRISIL Balanced Fund Index.

To bring uniformity, standardise scheme categories and enable ease of investment to investors, the regulator, on Oct 6 mandated fund houses to categorise all their existing and future schemes into five broad categories and 36 sub-categories.

Subsequently, the scheme will deploy 65-80 percent of its assets in equity and equity-related instruments, and derivatives and 20-35 percent will be invested in debt and money market instruments, and 0-10 percent in units issued by real estate and infrastructure investment trusts.

Currently, the scheme allocates 65-80 percent in equity and equity-related instruments of top 100 companies by market capitalization and 0-15 percent in companies which are not among top 100 by market capitalization during investment.

The scheme also deploys 20-35 percent in debt and money market instruments, and 0-10 percent in units issued by real estate and infrastructure investment trusts.

Unit holders, who do not agree with the changes, can avail the exit option between Feb 12 and Mar 13.

All other features of the scheme remain unchanged.
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