HindustanTimes Fri,31 Oct 2014

Rare Mutual Fund schemes

Kayezad E Adajania, Hindustan Times   November 30, 2012
First Published: 23:21 IST(30/11/2012) | Last Updated: 23:22 IST(30/11/2012)

The Indian mutual funds industry boasts a few unique schemes, which are not necessarily investment-worthy. We look at three.


Unit-linked insurance plans
LIC Nomura Asset Management Co. Ltd offers LIC Nomura MF Unit Linked Insurance Scheme (ULIS) - an equity-oriented scheme that invests at least 65% in equity markets, while UTI Asset Management Co. Ltd offers UTI - Unit Linked Insurance Plan (UTI-ULIP) - a debt-oriented scheme investing at least 60% in debt markets; both at least  a decade old. Due to a turf war between the Securities and Exchange Board of India (SEBI) and the Insurance Regul-atory Development Authority, fund houses avoid launching such schemes.

Pension plans
Only two - Franklin Templeton's Templeton India Pension Plan and UTI AMC's UTI Retirement Benefit Pension Fund - are on offer, investing up to 40% in equities and the rest in debt. SEBI is encouraging MFs to launch pension-type products. In June, Reliance AMC Ltd filed a draft offer document of a pension-type plan.

PE ratio FOF
Though a few schemes do switch between equity and debt, only one fund of funds (FoF) scheme  - FT India Dynamic PE Ratio Fund of Funds (FTDPEF) - switches between one equity scheme and one debt scheme, Franklin India Bluechip fund and Templeton India Income Fund. So far, the fund has a good track record.

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