The scheme seeks to generate income and capital appreciation by investing a certain portion in equity, equity-related instruments, and Real Estate Investment Trusts and Infrastructure Investment Trusts (Image: Shutterstock)
PPFAS Mutual Fund announced the launch of Parag Parikh Conservative Hybrid Fund on May 5.
The NFO opens on May 7 and will close on May 21, 2021. The minimum investment shall be Rs 5,000 and in multiples of Re 1 thereafter. The scheme will reopen on May 28, 2021.
The scheme aims to generate regular income through investments predominantly in debt and money market instruments.
Neil Parag Parikh, Chairman and CEO of PPFAS Mutual Fund said they want to replicate the idea of the Parag Parikh Flexi Cap Fund on the debt side.
“The idea is to have a flexible model with freedom to take advantage of market opportunities without being too constrained. Thus, the scheme will not be boxed into any particular type of debt like short term, government bond or high yield,”Parikh said.
Parikh added that the Parag Parikh Conservative Hybrid Fund will an offering with a slice of equity exposure, REITs and InvITs and could be considered as a 'one-stop shop'.
The scheme seeks to generate income and capital appreciation by investing a certain portion in equity, equity-related instruments, and Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs).
The performance of the scheme will be benchmarked against CRISIL Hybrid 85+15 – Conservative Index TRI. Rajeev Thakkar, Raunak Onkar and Raj Mehta will manage the scheme.
Both Direct and Regular Plans will offer Growth and Income Distribution cum Capital Withdrawal Options.
Rajeev Thakkar, Chief Investment Officer, PPFAS Mutual Fund said the strategy is to allow the fund manager to move between accrual and duration related instruments – including sovereign, State Government, PSU and Corporate securities across all maturities.
“The fund will have 10-25 percent exposure in equity and equity-related instruments. Allocation can be increased or reduced using arbitrage. The scheme will also be able to invest up to 10 percent of its asset in units of REITs and InvITS,” Thakkar added.
While no exit load will be levied for the 10 percent of units from the date of allotment, however, 1 percent load will be applicable if redeemed within one year from the date of allotment for the beyond 10 percent of the units. No exit load will be levied if redemption is made after 1 year from the date of allotment of units.