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Mahindra Manulife Mutual Fund has recently launched the Mahindra Manulife Manufacturing Fund, an open-ended equity scheme that aims to generate long-term capital appreciation by investing predominantly in companies engaged in the manufacturing sector.
The new fund offer (NFO) opened for subscription on May 31, 2024, and will close on June 14, 2024.
Fund details
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The Mahindra Manulife Manufacturing Fund focuses on the manufacturing sector, which is a significant contributor to India’s economy. The fund is managed by professionals, including Renjith Sivaram Radhakrishnan, Manish Lodha, and Pranav Nishith Patel. The minimum investment amount is Rs 1,000. The performance of the Mahindra Manulife Manufacturing Fund is benchmarked against BSE India Manufacturing TRI (First Tier Benchmark).
Investment strategy
The scheme’s asset allocation primarily focuses on equity and equity-related securities within the manufacturing theme, comprising 80 per cent to 100 per cent of assets, bearing a very high-risk profile. Additionally, up to 20 per cent may be allocated to other equity instruments, also with very high risk. To balance risk, up to 20 per cent can be invested in low to moderate risk debt and money market securities, with up to 10 per cent in very high-risk REITs and InvITs.
Risk profile and exit load
The Mahindra Manulife Manufacturing Fund carries a very high risk profile due to its focus on a specific sector. The fund does not have an entry load, but it does have an exit load of 0.5 per cent if units are redeemed or switched within three months of allotment.
Who should invest?
This fund is suitable for investors who are seeking long-term wealth creation and are willing to take on a higher level of risk. The fund offers an attractive option for investors looking to invest in a specific sector and benefit from the growth potential of the manufacturing sector in India.
