For all of you who have been patiently waiting for the “new fund offer” of a mutual fund I had advised earlier in my blog, the wait is over. PPFAS has opened the new fund for sale of units wef 13 May 2013. All readers of fauji finance are advised to take the “Direct Investment” option. This cuts out the commissions paid by the AMC and benefits the investor.
The first investment can be by cheque filled with the form and deposited either directly with the Mutual Fund/AMC at their Mumbai address or deposited at the nearest CAMS centre near your town/city. After you get the folio number and you are registered as a customer with the Mutual Fund, you may go in for a Systematic Investment Plan (SIP) with a fixed amount per month which you can invest for at least ten years without the pressure of withdrawing.
Although the AMC states “Scheme shall be investing in Indian equities, foreign equities and related instruments and debt securities. Buying securities at a discount to intrinsic value will help to create value for investors. Our
investment philosophy is to invest in such value stocks. Long Term refers to an investment horizon of 5 years and more.”
I again reiterate, as per faujifinace long term in Stock Markets implies at least 10 years ie at least one recession and boom cycle in the economy. Though sometimes recessions or depressionscan be as long as 15 years. Check out the great depression of 1929. So beware. But I am quite hopeful of decent returns in the long term from this fund.
Disclaimer: I am personally investing in this Mutual Fund.