Sahara MF plans 'nano' Daily Fund at just Rs 10

Financial Inclusion gets a new definition

Mutual fund services at the door step of investor

Minimum risk to investors and will offer high degree of liquidity

Targeting to spread the Mutual Fund foot print to the hitherto uncovered small investors, Sahara Mutual Fund has planned to launch a Daily Fund with a minimum investment option of just Rs 10, and in multiples of one rupee, thereafter.

The path breaking Sahara Daily Fund is a Systematic Investment Plan which has the facility to collect even small amounts on a daily basis from prospective investors in the far flung areas by providing them collection service at their doorstep
Sahara AMC has just filed a draft offer document of Sahara Daily Fund with the regulator SEBI. ( http://www.sebi.gov.in/mfdp/saharadaily.pdf )

The investment objective of the Open-ended Scheme is to generate returns by investing mainly in debt and debt related instruments including money market instruments. The investment objective is planned with an intention to decrease the risk to minimum for the investors. The CRISIL Composite Bond Fund Index will be the benchmark for the Sahara Daily Fund. Moreover the scheme is proposed to be an open ended one so it can provide investors with a high degree of liquidity. Units may be purchased or redeemed on any business day on an ongoing basis from not later than 30 days after the close of New Fund Offer period, at NAV related price subject to prevailing Load, if any.

The Sahara Daily Fund is in line with the government and regulators in creased emphasis on financial inclusion. While financial inclusion as concept has covered the underprivileged section of the society with credit off-take, there is a huge section across the country that needs a savings product.
For instance, daily wage earners and self-employed with small shops or hand carts do need a convenient as well as an appropriate product suited to their savings needs which will also help reduce their dependence on credit in the future.

Organized sector employment presently comprises less than 10 per cent of the workforce, leaving the vast majority of the working population with irregular income streams and inadequate access to financial services/ products including cushion against unforeseen circumstances.

As per the investment objectives the Daily Fund, will identify securities, which offer superior levels of yield at low levels of risk.The Scheme may also invest in high quality Money Market Instruments.

This scheme is a trend setter in the mutual fund industry which provides opportunity to small investor to participate in the economic development and reap the fruits of financial inclusion as intended by the government.