Mahindra Dhan Sanchay Yojana (महिंद्रा म्यूचुअल फंड धन संचय योजना)
Overview
Mahindra Dhan Sanchay Equity Savings Yojana is one of the open-ended plans which invest in arbitrage, equity and debt. The Mahindra Mutual Fund launches the fund. The funds have its benefits such as the usual investments which will result in wealth accretion; balance in investment risks of the equity of invests by the debt and price market tools, and elasticity in equity allocation that relates to the changeable market conditions.
Mahindra Mutual Fund has the primary aim of giving a wide range of scheme related mutual funds in all over India, especially in the rural and semi-urban areas. The trust was established on September 29, 2015, under the provisions by Indian Trusts Act, 1882. The sponsor is Mahindra and Mahindra Financial Services Limited and the Mahindra Trustee Company Private Limited. The Mahindra Asset Management Company Private Limited is the investment manager of the Mahindra Mutual Fund.
Background
The scheme was launched on February 1, 2017, and made available for the investors. The fund manager for the Mahindra Manulife Equity Savings Dhan Sanchay Yojana is Ratish Varier and Rahul Pal. The recent AUM or Asset under Management of the funds is INR 198 crore, and the newest NAV is INR 12.71 as of August 7, 2020.
The Mahindra Manulife Equity Savings Dhan Sanchay Yojana is esteemed as moderately high in risk. The minimum investment SIP is fixed at INR 500. Plus, the least lump sum investment is set at INR 1000. The units which exceed the 10% investment mark, there will be a 1% redemption charge within twelve months.
Objective
The main objective for investing in the scheme is to create capital escalation in a long period by investing in the instruments related to equity, debt, money market tools, and equity along with arbitrage opportunities. There will be no dividend available in the growth option under this scheme. Any kind of income made under this option shall be spent in this plan and replicated in Net Asset Value. This plan is suitable for those people who don't want any current income source but capital growth for a long period. However, there is no assurance or any guarantee for the investment objective we just discussed.
Features
The scheme is for the people who want wealth growth in a long period. Some features of this scheme are:
- This is an open-ended plan, which invests in debt, arbitrage opportunities and money-making tools and instruments about equity.
- There are both direct and regular plans under this scheme.
- However, the risks are moderately high under the scheme.
- Systematic investment plans are available.
- There are no options for systematic transfer plans.
- Systematic withdrawal plan is also available under the scheme.
Tax Implications
The returns are set at 15% if you use them before completion of one year. After completion of one year, you need to pay for LTCG tax which is 10% of the returns of INR one lakh in a financial year.
Investment amount
- The minimum application amount is INR 1000, and after that, you can pay in multiples of INR 01.
- The minimum additional investment is INR 1000, and after that, you can pay in multiples of INR 01.
- The minimum investment for SIP or Systematic Investment Plan is INR 500 and after that multiple of INR 01 if the plan has six monthly installments. And it is INR 1500 each and after that multiple of INR 01 if the plans have 4 quarterly installments.
- There is no entry load.
- If the exit load is 1%, then the 10% payable from the allocated units are used now or before one year from the date of allocated units.
- If the units are redeemed or switched out after the twelve months from the allocated unit's date then the exit load will be empty.
NAV per unit in Indian rupees= Market Value of the investment in scheme + current asset with the accrued income- current provisions and liabilities/number of those units outstanding dividend through the valuation option under the scheme.
Liquidity: The units under the scheme are given for the redemption and subscription for the costs based on NAV on the business days. The AMC would transmit the proceeds under ten business days since the date of receipt for the redemption request done by the investors.
Benchmark Index: 30% crisil composite bond fund index+ 55% Nifty index + 15% crisil liquid fund index
Official Website
Visit the Official website here.
Frequently Asked Questions
Q. What is the Mahindra Dhan Sanchay Yojana?
Mahindra Dhan Sanchay Equity Savings Yojana is one of the open-ended plans which invest in arbitrage, equity and debt. The Mahindra Mutual Fund launches the fund. The funds have its benefits such as the usual investments which will result in wealth accretion.
Q. What is the aim of the scheme?
The main objective for investing in the scheme is to create capital escalation in a long period by investing in the instruments related to equity, debt, money market tools, and equity along with arbitrage opportunities. There will be no dividend available in the growth option under this scheme. Any kind of income made under this option shall be spent in this plan and replicated in Net Asset Value.
Q. Why did they launch the scheme?
Mahindra Mutual Fund has the primary aim of giving a wide range of scheme related mutual funds in all over India, especially in the rural and semi-urban areas.
Q. Who is the fund manager of this scheme?
The fund manager for the Mahindra Manulife Equity Savings Dhan Sanchay Yojana is Ratish Varier and Rahul Pal. They have been managing the funds since 2017.
Q. What is NAV?
NAV per unit in Indian rupees= Market Value of the investment in scheme + current asset with the accrued income- current provisions and liabilities/number of those units outstanding dividend through the valuation option under the scheme.
Q. What is the tax implication rate for this scheme?
The returns are set at 15% if you use them before completion of one year. After completion of one year, you need to pay for LTCG tax which is 10% of the returns of INR one lakh in a financial year