Mumbai, May 28: Escorts Mutual Fund will float a derivatives MF scheme to generate returns through predominant investment in equity and equity related securities and ensure hedge for portfolio against market risks. The open ended growth oriented scheme would use derivatives for efficient transactions, generate current income and lower the volatility, Escorts MF said in its prospectus submitted to the Securities and Exchange Board of India.
Each unit of the scheme would have a face value of Rs 10 each and an investor could invest in regular income (dividend) or capital appreciation (growth) options, it said.
Unitholders could switch from one investment option to other within scheme or other schemes of Escorts MF at net asset value based prices at applicable load.
The scheme would provide opportunity to invest and exit at NAV related prices, it said.
Investors could participate in systematic investment plan, dividend re-investment plan and systematic withdrawal plan of the scheme.
There would be no initial load. However, the units could be purchased at the prevailing NAV with a sales load of 1.50 per cent, it added.
The investors would get free personal accident insurance cover upto maximum Rs three lakh per unitholder.
Bureau Report