Mahindra Manulife Mutual Fund Files Draft for Mahindra Manulife Value Fund

Mahindra Manulife Mutual Fund has submitted a draft for its new Mahindra Manulife Value Fund, an open-ended equity scheme focused on value investing. This fund seeks to deliver long-term capital appreciation by building a diversified portfolio of undervalued equities.

Highlights of the Scheme

• • Investment Strategy: The fund aims to capitalize on value opportunities, investing in companies trading below intrinsic value due to transitional factors like sectoral down cycles or short-term market inefficiencies. Fundamental analysis, considering aspects like valuation, cash flows, and competitive advantages, forms the backbone of its strategy.

• Asset Allocation:

• 1. Equity and Related Instruments: 65% – 100%.
  2. Debt and Money Market Securities: Up to 35%.
  3. Units Issued by REITs and InvITs: Up to 10%.
• Benchmark: The scheme’s performance will be measured against the Nifty 500 TRI, aligning with its objective to provide a broader market representation.
• Liquidity: Investors can subscribe and redeem units at NAV-based prices on any business day. The redemption proceeds will be dispatched within three working days.

Features & Options

• Unit Price: Rs. 10 per unit during the New Fund Offer (NFO) period.
• Exit Load: 0.5% for redemptions within three months of allotment; nil afterwards.
• Plans: Offers Regular and Direct Plans with growth and income distribution options.

Understanding Value Funds

Value funds are suited for investors with a medium to long-term horizon. They require patience to realize gains as the market identifies and corrects pricing inefficiencies. Such funds are ideal for those seeking to mitigate risk through diversified exposure.

Conclusion: Mahindra Manulife Value Fund is designed for investors wanting to tap into undervalued companies with growth potential. Its systematic approach to stock selection and diversified allocation positions it as a compelling option in the value investing space. However, like all mutual funds, there is no guarantee of returns, and prospective investors should consider their financial objectives and risk appetite before committing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.