Kothari Pioneer Mutual Fund (KPMF) plans to announce an indicative return of 14 per cent for the lock-in period of three years for its Kothari Pioneer Pension Plan to be launched on February 28. Says Ravi Mehrotra, chief investment officer, Kothari Pioneer MF, We are expecting to mop up Rs 40 crore in this scheme.
Mehrotra said the fund will have a conservative outlook and even the debt instruments will be chosen only from companies that are rated as A, A+, or A++.
However the asset management company (AMC) may introduce an equity component up to 20 per cent after the initial three years.
Mehrotra said that the scheme offered tax benefits as the government has waived tax for 20 per cent of the amount that is invested in the pension fund.
The scheme is targeted at self-employed people who do not have access to direct pension, said Mehrotra. The AMC is looking for investors who will stay with them for a long time, said Mehrotra.
Kothari Pioneer is also managing three open end equity fundsBlue Chip Fund, Prima Fund, Prima Plus Fundand two equity linked saving schemesTax Shield 1995 and Tax Shield 1996.
Two other schemes, the Guaranteed Income Plan and the Tax Shield 1997 are open at present.
