NFO: Parag Parikh Conservative Hybrid Fund

By Morningstar |  02-05-21 | 

In a span of eight years since its maiden fund launch in 2013, PPFAS Mutual Fund is set to launch its fourth fund called Parag Parikh Conservative Hybrid Fund. The fund house had last launched its Liquid Fund and Tax Saver Fund in 2018 and 2019, respectively.

Parag Parikh Conservative Hybrid Fund opens for subscription on May 7 and closes on May 21. The fund is suitable for those who have a time horizon of at least three years.

Parag Parikh Conservative Hybrid Fund will invest a minimum of 75% in debt instruments, 10% in equity, and up to 10% in Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InviTs).

The fund will adopt both accrual and duration strategy without taking excessive credit risk It will invest in Sovereign, State Government, PSU and corporate securities across all maturities.

On the equity side, it will invest in stocks with strong cash flows (higher dividend payout/buybacks). It will focus on choosing stocks possessing a 'margin-of-safety.'

The fund also offers exposure to real estate. According to the fund house, units of REITs and InvITs provide regular income distribution to investors in the form of dividends/interest/capital repayment. Further, there is scope for capital appreciation owing to any impending increase in the value of the assets represented by those units.

The fund will focus on providing reasonable returns with low volatility.

There is no exit load for up to 10% of units redeemed before one year. Units above 10% will attract 1% exit load if redeemed before one year. The exit load is nil after one year.

The regular plan will charge a Total Expense Ratio of 0.60% per annum while the direct share class will charge 0.30%.

The fund house manages assets worth Rs 9,604 crore as on April 2021.

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