Mahindra Mutual Fund unveils equity scheme

Hyderabad: Mahindra Mutual Fund, a part of Mahindra and Mahindra Financial Services Limited (MMFSL), on Wednesday launched new open-ended equity scheme- Mahindra Hybrid Equity Nivesh Yojana.

The scheme is aimed at investors who are aiming at long-term capital appreciation and income through investments in equity and equity-related instruments, debt and money market instruments.

"We believe the new scheme will offer a balanced portfolio with growth focus suitable for planning long-term goals. Investors should consider participating in the new scheme," said Ashutosh Bishnoi, MD & CEO, Mahindra Mutual Fund.

Investors are expecting policy reforms and stimulus from government. The future direction of the market will be dependent on earnings growth delivery and global factors, he added. The New Fund Offer (NFO), which opened on June 28, will close July 12. The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

The scheme will invest minimum 80 per cent in equity and equity-related securities, and up to 35 per cent in debt and money market securities. It will put up to 10 per cent in units issued by REITs & InvITs. On the expectations of mutual fund industry from the Union Budget, he said that 10 per cent LTCG (long term capital gains) tax on mutual funds should be removed.

"Mutual fund sector reached a stage in India where even small investors are investing in MFs through SIP. Such a tax on MFs will be a real deterrent," he reasoned. He also batted for tax benefits to debt-linked saving schemes on the lines of sops offered to equity-linked saving scheme (ELSS).