Religare Mutual Fund launches monthly income plan (MIP) with an asset allocation to gold through gold exchange-traded fund (ETF) called Religare MIP Plus. The fund seeks to generate regular income through a portfolio of fixed income securities, gold ETFs, equity and equity-related instruments. The fund will invest 65 to 90 per cent in debt and money market instruments and 10 to 35 per cent in gold ETFs. To generate moderate capital growth, the scheme will invest upto 25 per cent in equity.
The fund is benchmarked against CRISIL MIP Blended Index and Price of Gold.
Saurabh Nanavati, chief executive officer, Religare MF said, “Gold’s low or inverse correlation with other major asset classes like equity and debt helps to improve, stablise the risk/return profile during declining financial markets and poor economic climates.”
Religare MF also launched a traditional MIP with high quality fixed income securities and a small exposure to equity and equity-related instruments. The fund will invest 75 to 100 per cent in debt and the rest in equity and equity-related instruments. The fund is benchmarked against CRISIL MIP Blended Index.
For both products, the minimum application amount during NFO under the growth option is Rs 5,000 and then in multiples of Re 1. Under the dividend option, the minimum application amount is Rs 25,000 and then in multiples of Re 1.
The new fund offers open today, close on May 11.
