Parag Parikh Conservative Hybrid Fund NFO
PPFAS Mutual Fund has announced the launch of the Parag Parikh Conservative Hybrid Fund. The scheme would be predominantly investing its assets in debt & money market instruments and a portion in equity markets.
The New Fund Offer (NFO) starts from 07th May 2021 and will end on 21st May 2021. The scheme will reopen for continuous sale and repurchase from 28th May 2021.
The scheme’s investment objective is to generate regular income and long-term capital growth by investing its assets in debt & money market instruments and some portion in equity securities.
- The fund will be investing a minimum of 75% of its assets in the debt instruments and 10% in equity securities.
- As it is a conservative fund, it will invest in a mix of duration and accrual instruments without taking excessive credit risk.
- It is a hybrid fund which will make investments in 3 different asset classes.
- The fund will also invest in money market instruments along with debt instruments.
- The fund may also take some exposure to REITs and InvITs.
Why invest in Parag Parikh Conservative Hybrid Fund NFO?
- The fund offers the flexibility and exposure of investments in different categories of debt securities.
- It is a simpler and unambiguous debt product.
- The Fund’s deep knowledge of equities could help in picking up good stocks.
- Investors can get exposure to emerging asset classes like InvITs and REITs.
- It will invest a majority of its assets in debt securities which is not easy to understand by the majority of investors.
Debt Portfolio Construction drivers
- The portfolio will comprise ‘duration’ and ‘accrual’ securities.
- Fund will predominantly invest in State Government, Sovereign, and high-quality PSU securities and AAA-rated papers.
- The fund will try to limit the corporate credit risk.
- The debt portfolio will focus on providing reasonable returns with low volatility
Equity Portfolio Methodology
- Stocks which have a high dividend yield will be preferred.
- Fund will continuously focus on choosing stocks with a margin of safety.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in regular income & long-term capital growth.
- Interested in investments in debt, money market instruments, and equity securities.
- Recommended for investors with an investment horizon of 2-3 years & above.
Asset Allocation Pattern
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Debt and money market instruments||75%||90%||Low to Moderate|
|Equity and equity-related securities||10%||25%||Moderate to High|
|Units issued by InvITs and REITs||0%||10%||Moderate to High|
About the Scheme
|Name of the fund||Parag Parikh Conservative Hybrid Fund|
|Fund launched by||PPFAS Mutual Fund|
|Asset Management Company||PPFAS Asset Management Private Limited|
|Type of scheme||An open-ended hybrid scheme primarily investing in debt securities|
|Investment Objective||The scheme’s investment objective is to generate regular income by investing its assets in debt & money market instruments and long-term capital growth by investing some portion in equity securities.|
|Benchmark||CRISIL Hybrid 85+15 - Conservative Index TRI|
|Entry Load||Not Applicable|
-10% of the units redeemed or switched out within 1 year - NIL,
-More than 10% of the units redeemed or switched out within 1 year- 1% of applicable NAV
-If units are redeemed or switched out after 1 year- NIL
Taxed as Non-Equity
-If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab
-If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits
|Minimum Application Amount||₹ 5,000 & in multiples of ₹ 1 thereafter|
|Minimum Additional Amount||₹ 1,000 & in multiples of ₹ 1 thereafter|
|STP, & SWP||Available|
|Fund Managers||Mr. Rajeev Thakkar, Mr. Raunak Onkar, and Mr. Raj Mehta|
|Type||Minimum Installments||Minimum Amount|
|Monthly SIP||6||₹1,000 & in multiples of ₹1 thereafter|
|Quarterly SIP||4||₹3,000 & in multiples of ₹1 thereafter|