The Wealth Company Mutual Fund Filed A Draft With SEBI for an Ethical Fund

The Wealth Company Mutual Fund has filed draft documents with the Securities and Exchange Board of India (SEBI) for the launch of its new thematic equity scheme, The Wealth Company Ethical Fund. The scheme will operate as an open-ended fund following ethical and Shariah-compliant investment principles.

Scheme Structure

The fund is promoted by Wealth Company Asset Management Holdings Pvt. Ltd., based in Mumbai, with Pantomath Trustee Pvt. Ltd. serving as the trustee. Units will be offered at a face value of ₹10 each. 

During the New Fund Offer (NFO), the minimum application amount is set at ₹1,000, while Systematic Investment Plans (SIPs) start at ₹250. Regular and Direct Plans will be available, with Growth and IDCW options.

Investment Framework

The scheme will allocate 80-100% of assets to equity and equity-related instruments of companies that comply with ethical guidelines. Up to 20% may be invested in debt and money market instruments, while exposure to REITs and InvITs is capped at 10%. Derivatives may be used for hedging. The risk level for the fund is classified as very high on the SEBI riskometer.

Benchmark and Exclusions

Performance of the scheme will be benchmarked against the NIFTY 500 Shariah TRI Index. The fund will exclude businesses engaged in alcohol, gambling, tobacco, narcotics, meat and poultry, pesticides, leather, and vulgar entertainment. The exclusions combine Shariah principles with broader ethical considerations.

Read more: Domestic Mutual Funds Hold Record 10.6% Stake in NSE-Listed Companies!

Management and Compliance

Aparna Shanker, with over 32 years of experience in the mutual fund industry, has been appointed as fund manager. The draft notes compliance with SEBI (Mutual Funds) Regulations, 1996, covering disclosure requirements, portfolio updates, and NAV declarations. An exit load of 1% will apply if redeemed within 30 days; no charges will be levied thereafter.

Conclusion

The draft filing outlines the operational framework, exclusions, and compliance measures for The Wealth Company Ethical Fund. The scheme is positioned as an ethical equity option within SEBI’s thematic fund category.

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 are subject to market risks, read all the related documents carefully before investing.