{"id":1376,"date":"2019-12-11T06:22:45","date_gmt":"2019-12-11T06:22:45","guid":{"rendered":"https:\/\/blog.certifiedfinancialguardian.com\/?p=1376"},"modified":"2019-12-11T07:01:21","modified_gmt":"2019-12-11T07:01:21","slug":"mahindra-top-250-nivesh-yojana-worthy-yojana-to-add-to-your-portfolio","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2019\/12\/11\/mahindra-top-250-nivesh-yojana-worthy-yojana-to-add-to-your-portfolio\/","title":{"rendered":"Mahindra Top 250 Nivesh Yojana: Worthy Yojana to Add to Your Portfolio?"},"content":{"rendered":"\n

The recent market rally is due to the announcement of various reforms to bolster the growth of the sluggish economy, with the uptick in consumer demand during festivities and easing of trade tensions. This provides an opportunity to do value-buying in mid and small cap space, but small caps are yet to recover.
However, large caps and mid-caps are doing better, but due to the volatile nature of the markets, relying only on small caps or mid-caps to earn returns can be hazardous with the extreme risk involved. But if one considers mid and large cap for investment, one can accumulate wealth over the long term. As one gets an opportunity to invest in stability of large-caps and high growth potential of midcaps. <\/p>\n\n\n\n

Hence among several fund houses even Mahindra Mutual Fund<\/a>has launched a large & mid cap fund, Mahindra Top 250 Nivesh Yojana.It is an open-ended equity scheme that will invest predominantly in stocks of large and mid-cap companies. <\/p>\n\n\n\n

Mahindra top 250 Nivesh Yojana will follow the asset allocation limits to allocate its assets between 35% to 65% investment in equity & equity related instruments of large-cap and mid-cap companies each. The fund may also allocate utmost 30% of its assets to equities and equity-related securities of other than large-cap and mid-cap companies with the remaining allocation to debt instruments, money market instruments, and units issued by REITs and InvITs.

So when you plan for long-term goals, you want the stability of large-caps along with the agility of mid-caps in the journey of wealth creation and accomplishing financial goals. Additionally, if you have the stomach for moderately high risk, you may skew your equity portfolio to a Large & Mid-cap fund<\/a>. <\/p>\n\n\n\n

Table 1:  Details of Mahindra Top 250 Nivesh Yojana<\/em><\/strong><\/p>\n\n\n\n

\n\n\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t<\/tr>\n\t\t\n\t\t\t
Type<\/b><\/td>\n\t\t\tAn open-ended equity scheme investing in both large-cap and mid-cap stocks<\/td>\n\t\t\tCategory<\/b><\/td>\n\t\t\tLarge and Midcap Fund<\/td>\n\t\t<\/tr>\n\t\t
Investment Objective<\/b><\/td>\n\t\t\tTo seek long term capital growth through investments in equity and equity-related securities of both large-cap and mid-cap stocks.
\n\t\t\tHowever, there can be no assurance that the investment objective of the Scheme will be achieved.<\/td>\n\t\t<\/tr>\n\t\t
Min Investment<\/b><\/td>\n\t\t\tRs 1,000 and in multiples of Re 1 thereafter<\/td>\n\t\t\tFace Value<\/b><\/td>\n\t\t\tRs 10 per unit<\/td>\n\t\t<\/tr>\n\t\t
Plans<\/b><\/td>\n\t\t\t\n\t\t\t
    \n\t\t\t\t
  • Regular<\/li>\n\t\t\t\t
  • Direct<\/li>\n\t\t\t<\/ul>\n\t\t\t<\/td>\n\t\t\t
Options<\/b><\/td>\n\t\t\t\n\t\t\t
    \n\t\t\t\t
  • Growth<\/li>\n\t\t\t\t
  • Dividend (Pay-out, Reinvestment*)<\/li>\n\t\t\t<\/ul>\n\t\t\t*Default option<\/td>\n\t\t<\/tr>\n\t\t
Entry Load<\/b><\/td>\n\t\t\tNil<\/td>\n\t\t\tExit Load<\/b><\/td>\n\t\t\tIf redeemed\/ switched on or before 365 days from the date of allotment:\n\t\t\t
    \n\t\t\t\t
  • An Exit Load of 1% is payable if Units are redeemed \/ switched-out up to 1 year from the date of allotment;<\/li>\n\t\t\t\t
  • Nil if Units are redeemed \/ switched out after 1 year from the date of allotment.<\/li>\n\t\t\t<\/ul>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t
Fund Manager<\/b><\/td>\n\t\t\tMr V. Balasubramanian<\/td>\n\t\t\tBenchmark Index<\/b><\/td>\n\t\t\tNIFTY LargeMidcap 250 TRI Index<\/td>\n\t\t<\/tr>\n\t\t
Issue Opens:<\/b><\/td>\n\t\t\tDecember 06, 2019<\/td>\n\t\t\tIssue Closes:<\/b><\/td>\n\t\t\tDecember 20, 2019<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n<\/div>\n\n\n\n

\n(Source: Scheme Information Document<\/a>)\n<\/p><\/center>\n\n\n\n


How will the scheme allocate its assets?<\/strong> <\/p>\n\n\n\n

Under normal circumstances, it is anticipated that the asset allocation of Mahindra Top 250 Nivesh Yojana will be as follows:<\/p>\n\n\n\n

Table 2: Mahindra Top 250 Nivesh Yojana\u2019s Asset Allocation<\/em><\/strong><\/p>\n\n\n\n

\n\n\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t
Instrument<\/b><\/td>\n\t\t\tIndicative Allocation(% of net assets)<\/b><\/td>\n\t\t\tRisk Profile<\/b><\/td>\n\t\t<\/tr>\n\t\t
Minimum<\/b><\/td>\n\t\t\tMaximum<\/b><\/td>\n\t\t\tHigh\/Medium\/Low<\/b><\/td>\n\t\t<\/tr>\n\t\t
Equity and Equity related Securities^<\/td>\n\t\t\t80<\/td>\n\t\t\t100<\/td>\n\t\t\tMedium to High<\/td>\n\t\t<\/tr>\n\t\t
a) Large Cap Companies*<\/td>\n\t\t\t35<\/td>\n\t\t\t65<\/td>\n\t\t\tMedium to High<\/td>\n\t\t<\/tr>\n\t\t
b) Mid Cap Companies#<\/td>\n\t\t\t35<\/td>\n\t\t\t65<\/td>\n\t\t\tMedium to High<\/td>\n\t\t<\/tr>
c) Other than Large Cap and Mid Cap Companies<\/td>\n\t\t\t0<\/td>\n\t\t\t30<\/td>\n\t\t\tMedium to High<\/td>\n\t\t<\/tr>\n
Debt and Money Market Securities (including TREPS (Tri-Party Repo), Reverse Repo)<\/td>\n\t\t\t0<\/td>\n\t\t\t20<\/td>\n\t\t\tLow to Medium<\/td>\n\t\t<\/tr>\n
Units issued by REITs and InvITs<\/td>\n\t\t\t0<\/td>\n\t\t\t10<\/td>\n\t\t\tMedium to High<\/td>\n\t\t<\/tr>\n\t<\/tbody>\n<\/table>\n<\/div>\n\n\n\n

\n^including derivative instruments to the extent of 50% of the Net Assets of the Scheme. Investment in derivatives shall be for hedging, portfolio balancing, and such other purposes as may be permitted from time to time under the Regulations and subject to guidelines issued by SEBI\/RBI from time to time.

\n*Definition of Large Cap Companies: 1st \u2013 100th company in terms of full Market Capitalization.

\n#Definition of Mid Cap Companies: 101st \u2013 250th company in terms of full Market Capitalization.

\n\nFor the purpose of this definition(s), the list of stocks prepared by AMFI in this regard will be adopted.
\nThe list of stocks to determine Large Cap and Mid Cap companies will be decided on a half-yearly basis post-release of the updated list of stocks by AMFI every six months which is based on the average full market capitalization data of the previous six months of the stocks as on the end of June and December of each year. In case of deviation, the portfolio of the Scheme would be rebalanced to bring it in line with the updated list within one month from the date of release of the updated list of stocks by AMFI.
\nSubject to the Regulations and applicable regulatory guidelines as may be issued from time to time, the Scheme may also engage in securities lending not exceeding 20% of the nett assets of the Scheme.
\nThe Scheme shall not invest in securitised debt, credit default swaps and repos in corporate bonds. The Scheme does not propose to invest in foreign securities. The Scheme shall not engage in short selling
\nThe cumulative gross exposure through investments in equity and equity-related securities, debt securities, money market instruments, units issued by REITs & InvITs and exposure in derivatives\u2019 positions shall not exceed 100% of the net assets of the Scheme\n<\/p><\/center>\n

\n

\n(Source: Scheme Information Document<\/a>) \n<\/p><\/center>\n\n\n\n

What will be the Investment Strategy?<\/strong> <\/p>\n\n\n\n

\n The aim of the Mahindra Top 250 Nivesh Yojana is to seek growth and deliver above benchmark returns by providing long term capital growth from an actively managed portfolio, comprising primarily large cap and mid cap stocks. The scheme aims to be predominantly invested in equity and equity-related securities.
\n
\n The fund manager will endeavour to achieve this by maintaining a minimum of 80% allocation to equity and equity related securities, out of which allocation of at least 35% each will be towards large cap stocks and mid cap stocks.
\n Depending upon the market conditions and outlook, the fund manager will adopt a growth or value approach while investing. Investment could also be made towards fixed income securities including money market instruments.\n<\/p>\n\n\n\n

[Read<\/strong>: Growth v\/s Value Investing: Which Is Better Of The Two In Current Times?<\/a>]<\/p>\n\n\n\n

\n A top-down and bottom up approach<\/a> will be used to invest in equity and equity-related instruments. Investments will be based on the fund management team\u2019s analysis of business cycles, regulatory reforms, competitive advantage, etc.
\n The fund manager in selecting stocks will focus on the fundamentals of the business including:\n<\/p>\n\n\n\n