Mahindra Manulife Files Draft with SEBI for New Sectoral Equity Fund

Mahindra Manulife Investment Management has filed draft documents with SEBI for the launch of an open-ended equity scheme titled Mahindra Manulife Banking & Financial Services Fund. The fund is classified as a sectoral scheme and will invest primarily in companies engaged in banking and financial services.

Investment Focus

The fund will allocate 80-100% of its assets to equity and equity-related instruments of companies in the banking and financial services sector. Up to 20% may be invested in equities from other sectors or in debt and money market instruments. Investments in REITs and InvITs are capped at 10%, and foreign securities can make up to 20% of the total assets.

Offer Details

Units will be offered at ₹10 each during the New Fund Offer (NFO). The minimum initial investment is ₹1,000. The fund will be available in both Regular and Direct Plans, each offering a Growth option and an Income Distribution cum Capital Withdrawal (IDCW) option.

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Load and Exit Terms

An exit load of 0.5% will apply if units are redeemed or switched out within three months from the date of allotment. No exit load will be charged after that period. The redemption proceeds will be dispatched within three working days from the date of request.

Benchmark and Management

The scheme will be benchmarked against the Nifty Financial Services TRI. The fund will be managed by Vishal Jajoo and Chetan Gindodia. The scheme does not offer any guaranteed returns.

Additional Facilities

Investors will have access to Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), and Systematic Withdrawal Plans (SWP). The scheme will not engage in short selling and will limit securities lending to 20% of its net assets, with a 5% cap per intermediary.

Conclusion

The scheme is currently in the draft stage and has no prior performance history. Once approved, further details will be published on Mahindra Manulife’s website and through AMFI platforms.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.