Mahindra Mutual Fund launches 2 open-ended schemes

Mahindra Mutual Fund has launched two new funds - Bal Vikas Yojana  and Badhat Yojana. Speaking to CNBC Awaaz, Mahindra Mutual Fund’s Chief Executive Officer Ashutosh Bishnoi said the new fund offers of both schemes will close on May 4.

Mahindra Mutual Fund Bal Vikas Yojana is a child plan. This is a balanced fund and parents or close relatives can invest in the child's name for future needs such as education, higher education or marriage.

Investments in this fund can be made only in the name of the minor child and contributions in the investment account could be made by all family members and friends. The fund offers optional lock-in investment till the child reaches 18 years of age.

This fund will invest at least 65 percent of its assets in shares of "high quality companies", while the remaining 35 percent will be deployed in debt and money market instruments. It also has the provision of investing 5-15 percent of its assets in derivatives.

The scheme offers both regular and direct plans for investments. Investors will also have the option of investing through systematic investment plan or SIP. The minimum investment in this scheme is Rs 1,000 and the scheme will be benchmarked against 50 percent CNX Nifty + 50 percent CRISIL Composite Bond Fund Index.

The child plan will levy an exit load of 3 percent if units are redeemed within one year from the date of allotment; 2 percent if redeemed after one year and up to two years from the date of allotment; 1 percent if redeemed after two years and up to three years from the date of allotment, and no load thereafter.

The fund house has also launched Mahindra Mutual Fund Badhat Yojana, an open-ended growth fund. The scheme provides medium to long term capital appreciation through appropriate diversification and taking low risk on business quality. The diversified portfolio would predominantly consist of equity and equity-related securities including derivatives.

The open-ended fund will invest at least 75 percent of its assets in equity and equity-related instruments, while the balance 25 percent will be deployed in debt and money market securities. The benchmark of the scheme will be Nifty 200 Index.

Similar to the Mahindra Mutual Fund Bal Vikas Yojana, this scheme will also have regular and direct plans for investments and sub options of dividend and growth. It also offers SIP facility for investments.

The minimum investment in the scheme is Rs 1,000 and the exit load is 1 percent if an investor redeems within one year from the date of allotment. Investments after one year will not attract any exit load.

As per the riskometer, both funds will fall under the category of moderately high risk funds.