PPFAS Mutual Fund announced the launch of Parag Parikh Conservative Hybrid Fund. The scheme aims to generate regular income through investments predominantly in debt and money market instruments. It also seeks to generate income and capital appreciation by investing a certain portion in equity, equity-related instruments, and Real Estate Investment Trusts / Infrastructure Investment Trusts (REITs/InvITs). NFO opened on 07 May 2021 and NFO closes on 21 May 2021.
The minimum investment shall be Rs 5,000 and in multiples of Re 1 thereafter. The scheme will reopen on 28 May 2021.
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.
Neil Parag Parikh, Chairman and CEO, PPFAS Mutual Fund said, “We want to replicate the idea behind Parag Parikh Flexi Cap Fund on the debt side. The idea is to have a flexible model where we have the 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. Parag Parikh Conservative Hybrid Fund will be our debt fund offering with a slice of equity exposure, REITs and InvITs. The scheme could be considered as a ‘one-stop shop’ for your debt needs.”
Both Direct and Regular Plans will offer Growth and Income Distribution cum Capital Withdrawal Options.
About the scheme’s Investment strategy, Rajeev Thakkar, Chief Investment Officer, PPFAS Mutual Fund said, “The Scheme will adopt a flexible model that will allow the fund manager to move between accrual and duration related instruments. These include the sovereign, State Government, PSU and Corporate securities across all maturities. The fund will have 10 to 25% exposure in equity and equity-related instruments. The allocation can be increased or reduced using arbitrage. The scheme will also be able to invest up to 10% of its asset in units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITS).”
While no exit load will be levied for the 10% of units from the date of allotment, however, 1% Load will be applicable if redeemed within one year of date of allotment for the beyond 10% of the units. No exit load will be levied if redemption is made after 1 year from the date of allotment of units.