Reliance Dual Advantage Fixed Tenure Fund XI – Plan A is a close-ended hybrid scheme where the principal amount of an investor will be held at moderate risk. This product is suitable for those investors who want return and growth over the longer term. However, the fund will be limiting the interest rate volatility factor by making investment in debt, money market and G-sec instruments which will be maturing on or before the date of maturity of the scheme.
Here are a few things one should know before making any investment in this such fund:
New Fund Offer time period
The NFO opens on April 10, 2017, and closes on April 24, 2017.
Investment Objective
The scheme will help in generating returns and also, reduce the 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. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
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Asset Allocation
Equity exposure can be taken either through the purchase of equity shares / other equity-related instruments/ securities or through investments in derivatives. Investments in derivatives would be made as per applicable regulatory guidelines, including investments in futures and options.
The cumulative gross exposure through repo transactions in corporate debt securities along with equity, debt and derivative positions should not exceed 100% of the net assets of the scheme. The gross exposure to derivatives in the equity segment shall be restricted as per the individual equity asset allocation tables mentioned above. However, the same shall not exceed 30% of the net assets of the scheme.
Liquidity of the Scheme
Since it is a close-ended hybrid scheme, the units can be purchased only during the New Fund Offer (NFO) period of the scheme. No redemption or repurchase of units will be allowed prior to the maturity of the scheme. Units held in dematerialized form can only be traded on the stock exchange, where the units are listed.
Load Structure
There is no entry or exit load.
Minimum Application Charges
The minimum application charges for investing in this NFO is Rs 5000 per option and in multiples of Re 1 thereafter.
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Scheme’s Benchmark
The scheme is a mix of 80 percent of Crisil Composite Bond Fund Index & 20 percent of Nifty 50 Index.
It is, however, to be noted that one should consult one’s financial adviser before investing in such a fund. Moreover, one must link one’s investments to one’s financial goals of life.
(Source: reliancemutual.com)