The scheme seeks to participate both in the upward and downward movements of the market by taking a directional position in futures and value hedging the portfolio with a contra options position. The long options position ensures that the downside is limited even if the view on the direction of the market goes wrong. The exposure to derivatives is gradually built over the tenure of the scheme. Since the scheme is structured as a 3-year close-ended product, the investors are advised to have faith in the strategy as maximum benefits would be derived by those who stay in for the entire 3-year period. The scheme has also received an ‘AAA (so)’ rating from CRISIL. |
