Peerless MF floats first equity fund

The Kolkata-headquartered Peerless Mutual Fund today launched Peerless Equity Fund, an open-ended equity scheme.

The objective of the scheme is to generate returns with long-term capital appreciation by investing in equities and equity-related securities in diversified sectors, the asset management firm said in a statement issued.

Peerless Equity Fund is a multi-cap diversified fund and will have the corpus allocated in large, mid and small cap stocks, based on prevailing macro-economic and socio-political environments, it said.

"Domestic equity markets have corrected significantly. We expect situation to stabilise over the next 2-3 months. Therefore, retail investors should take opportunity of market correction and enter the equity assets class for long term out performance," Peerless MF Managing Director and Chief Executive Akshay Gupta said.

The new scheme opens today and closes on September 21 and will be managed by Kaushik Dani.

The minimum application amount for the scheme is Rs 1,000 and in multiples of Re one thereafter. It also offers a Systematic Investment Plan option on monthly, quarterly and half-yearly basis with the purchase amount being Rs 500, Rs 1,000 and Rs 2,000 respectively.

The scheme offers growth and dividend options and will charge an exit load of one per cent if the redemption takes place within a year.

According to the Association of Mutual Funds in India (AMFI) data, the fund house's average assets under management stood at Rs 4,907.94 crore as on June 30, 2011.