Reliance Mutual Fund has launched a close-ended hybrid scheme named “Reliance Dual Advantage Fixed Tenure Fund X – Plan F ”
The scheme’s objective is to generate returns and reduced interest rate volatility, through a portfolio of fixed income securities that are maturing on or before the maturity of the scheme along with capital appreciation through equity exposure.
The tenure of the scheme is 1355 days from the date of allotment of units. The face value of the new issue will be Rs. 10 per unit. The new issue will be open for subscription from 18 Jan. 2017 to 1 Feb. 2017.
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Fund Suitability
The Scheme is suitable for investor
- Whose investment horizon matches the tenure of plan
- Investor who want lower volatility in the returns
Investment Philosophy
The fund will endeavor to invest on an average 70% – 95% asset in Debt Securities (Predominantly in NCDs) & 0% – 25% Money Market Instruments and the remaining 5% – 30% in Equity and Equity related instruments/securities.
Fixed Income Portion :
- The investment process intends to meet fund specific investment objectives and develop a well diversified, moderate credit portfolio that reduce liquidity risk and credit risk with an aim to generate relatively better returns.
- The investment process is research oriented with focus on private sector issuers which may help generate better gross yields and eventually better returns to the investor
Equity Portion :
- The strategy will be to invest into equity mutual fund units with a total exposure of around 20% of corpus
- Endeavour would be to invest in a large cap oriented fund
- In case the Investment Manager is of the view that the risk-reward of investment in equity and equity related securities is not in the best interest of the unit holders at a given point in time, then the Investment Manager can deploy funds in Bank CDs / CBLOs / T Bills / Govt Sec./Repo/Reverse Repo/ Liquid Schemes .
Call your Mutual Fund adviser, agent, broker for Investment
Rajendra – 8007750904