How it works for you
- Fixed deposits may offer principal protection, but returns are often so low they barely keep up with inflation. Equity investments have historically offered higher returns, but they can pose a greater risk to your capital. Capital protection orientated funds offer capital protection orientation and capital gain through a mix of debt and equity in the portfolio
- It is a Fund that aims for deposit plus returns (Generating more returns than a five year fixed deposit), without loosing sight of capital protection orientation.
- Capital Protection Orientation: Endeavours to preserve capital by investing sufficient funds (about 70%) in fixed income securities so that, with the interest, it grows back to your initial capital value over a 5-year period. These investments will be made only in the highest rated (AAA) papers and in Government securities. They will be held until their date of maturity so that even if interest rate drops in the next five years it won't affect the scheme’s objectives.
- Capital Gain : Generates capital appreciation by investing a part of the funds (about 30%) in equity. The equity portion will be invested primarily in stocks forming part of the S&P CNX 500 Index. Consequently it will be a multi-cap equity portfolio with a mid- and small – cap emphasis.
- Highest CRISIL Rating: AAA(so) :This rating indicates the highest degree of certainty regarding timely payment of face value of the investment to investors.
- If you are new to equity investment this is an excellent avenue to participate in the equity market with the comfort of capital protection orientation – especially suitable for first-time investors and those with a conservative mindset.
Issue Opens on 15.02.2011;
Closes on 01.03.2011
