Helios Mutual Fund has announced the establishment of the Helios Financial Services Fund, an open-ended equity plan that allows investors to profit from long-term development prospects in the financial services industry.

The public subscription period for the program began on May 31, 2024, and it will end on June 14, 2024. After the units are allotted, the plan reopens for continuous subscription and redemption within five business days.

What type of investment plan is this? 

This is an equity program with open-ended investments in the financial services industry. "Helios Financial Services Fund serves as an avenue to benefit from the robust growth potential of the Indian financial services sector and is suitable for investors looking for long-term wealth creation or investment in equities of companies engaged in financial services," said Samir Arora, Founder of Helios Capital, during the fund's launch.

What is the primary reason for making an investment in this fund? 

The scheme's investment goal is to produce long-term capital growth from a portfolio that is primarily made up of equities and equity-related securities of financial services businesses. Nevertheless, there is no guarantee or assurance that the scheme's investment goal will be met. 

How will the program measure its effectiveness? 

Helios Financial Services Fund will use the Nifty Financial Services Total Return Index as its benchmark. 

Among the possibilities offered by AMFI, it is the most suitable index, which is why it has been chosen as the benchmark.  The index is meant to represent the actions and outcomes of the Indian financial sector, which includes insurance, NBFC, banks, financial institutions, home finance, and other financial services providers. Nonetheless, Trustees retain the authority to substitute a more appropriate benchmark in the future should one become available that better meets the Scheme's investment goal.

Does this scheme have any entrance or exit loads? 

There is no "Entry Load" in this plan, therefore investors may store their profits there without having to pay anything. The following would be the cost of the "Exit Load":

• If, within three months of the date of allocation, units redeemed or switched out account for up to 10% (limit) of the units purchased or switched in, then 0;
• If units are redeemed or replaced and exceed the cap within three months of the allocation date, 1% of the relevant NAV will be deducted.
• If swapped out or redeemed after three months from the allocation date: nothing.

Who is going to oversee this plan? 

The scheme's appointed fund managers are Pratik Singh and Alok Bahl. 

Is there any inherent risk in the fund?

According to the information in the plan Information Document, the plan carries "Very High Risk" and is best suited for investors who are prepared to accept that their money will only be subject to extremely high risk. If investors are unsure if the product is right for them, they should speak with their financial advisors.