InvestorQ : When 'Mahindra Hybrids Equity Navish Yojana is perfect for me?
DURVESH made post

When 'Mahindra Hybrids Equity Navish Yojana is perfect for me?

Answer
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1 year ago


The Mahindra Hybrids Equity Nivesh Yojana (MHENY) launched by the Mahindra Mutual Fund, a SEBI registered AMC which is a recent addition to the existing list of AMCs in India and is promoted by the Anand Mahindra Group. The AMC is a subsidiary of M&M Financial. MATHENY is an open-ended hybrid scheme seeks to generate long term capital appreciation and also income through investments in equity and equity related instruments and investments in debt and money market instruments.

The New Fund Offer (NFO) opened on June 28th and will be open till Jul 12th wherein the units of the fund are being issued at Rs.10. As growth is driven hybrid fund, MHENY will allocate 65% to 80% Equity and Equity Related Securities with a higher risk profile with 20% to 35% invested in Debt and Money Market Securities. The fund also proposes a maximum 10% allocation to REITs and INVITs. Interestingly, the fund offers the facility to redeem up to 10% of units allotted within 12 months without exit load and anything above that will attract an exit load of 1%.

Being a Hybrid fund (equity-oriented balanced fund), it will be suited to you if you are looking for wealth creation with managed risk. Typically, equity-oriented balanced funds have given returns of around 12% annualized. For tax purposes, this will be treated as an equity fund. Hence capital gains will be tax-free each year up to Rs.1 lakh and any capital gains on redemption above that will be taxed at 10% flat without indexation benefits.