Mahindra Mutual Fund Launches ‘Mahindra Rural Bharat And Consumption Yojana’: An Equity Scheme for Investors for Seeking Long Term Capital Appreciation

By 121 News

Chandigarh 10th October:- Mahindra Mutual Fund, a wholly owned subsidiary of Mahindra and Mahindra Financial Services Limited (MMFSL) launches new open ended equity scheme 'Mahindra Rural Bharat and Consumption Yojana,' for investors who are seeking long-term capital appreciation by investing predominantly in equity and equity related instruments of entities engaged in and/ or expected to benefit from the high growth of Income & Consumption in rural India.

Jatinder Pal Singh, CMO, Mahindra Mutual Fund, said that the scheme would endeavor to generate capital appreciation by investing in entities and businesses that are engaged in and are expected to benefit from the structural shift and growth in Rural India. This would include several sectors that are likely to benefit consistently due to improvement in income & Consumption of rural India. Various structural reform initiatives such as the soil card, crop insurance, higher MSP, e-Mandi and Doubling of farm Income have the effect of sharply increasing rural disposable income.

He added that the New Fund Offer opens on October 19, 2018 and closes on November 02, 2018. The scheme will reopen for continuous sale and repurchase within 5 business days from the date of allotment. 

Venkataraman Balasubramanian, Chief Equity Strategist, Mahindra Mutual Fund said that  Mahindra Rural Bharat and Consumption Yojana would provide investors an opportunity to invest in a segment with strongest contribution potential to India's growing GDP. The fund will focus on segments insulated from global volatility such as currency movements, etc and invest in companies that can capture the under-penetration opportunity in Rural India.

We expect India's higher GDP growth to be contributed by positive demographic dividend and improvement in consumption pattern from Rural India. 'Mahindra Rural Bharat and Consumption Yojana' provides investors an opportunity to participate in India growth story predominantly in Rural India by investing in well diversified equity portfolio of fundamentally strong, and well-known companies. We believe the scheme offers an attractive long-term investment opportunity, hence, investors seeking higher capital appreciation from their investment should consider participating in Mahindra Rural Bharat Yojana.

The scheme would invest minimum 80% in equity and equity related instruments of entities having exposure towards rural India, and upto 20% in equity and equity related instruments of entities other than having exposure to rural India. The scheme would invest upto 20% in debt and money market securities, and upto 10% in units issued by REITs & InvITs.