The fund house has said that the scheme will aim to help conservative investors to invest amid volatility and lackluster interest rates in fixed income markets. The fund will use investments in gold and international equities to provide a hedge against inflation and diversification.
The benchmark for the fund is 30% Nifty 50 TRI + 50 % Crisil Short Term Gilt Index + 10% Domestic Price of Gold + 10% S&P 500 Index (TRI) and investors can invest in the fund through lumpsum or SIP mode with minimum subscription of RS 500/- during NFO and ongoing period.
The scheme will invest minimum 10% and maximum 50% in equity and equity related instruments, 40%-80% in debt and money market instruments. The scheme will have a 10-20% allocation to gold ETFs. According to the press release, the fund will follow this asset allocation pattern:
Indian Equities: A high quality portfolio of large cap stocks selected based on proven Q-G-L-P philosophy.
Debt and Money Market Instruments: A high quality AAA portfolio with a 3-5 year average maturity, heavy on G-Sec and SDL’s.
International Equities: Through an allocation to units of Motilal Oswal S&P 500 Index Fund
Gold: Through units of a Gold ETF Fund.