CRISIL assigns highest rating to ING Vysya's MF
However, the rating is not a comment on the scheme's Net Asset Value (NAV) in relation to its face value, in case the units are repurchased any time prior to the scheme's maturity date, it said.
By PTI |
NEW DELHI: In the first ever rating of Mutual Fund Scheme, rating agency CRISIL today assigned highest rating to the proposed Dynamic Asset Allocation Fund (DAA) of ING Vysya Mutual Fund.
It has assigned the 'AAA(so)' ratings to ING Vysya Dynamic Asset Allocation Fund, indicating the highest degree of certainty regarding timely payment of the face value of the units to unit holders on the scheme's maturity, the rating agency said in a release.
However, the rating is not a comment on the scheme's Net Asset Value (NAV) in relation to its face value, in case the units are repurchased any time prior to the scheme's maturity date, it said.
The DAA strategy to be used by ING IM India allocates portfolio wealth between equity and debt assets in order to maintain a constant risk exposure. If equity investments increase in value, more of the portfolio is invested in equity in an effort to take advantage of the rising equity values. If the equity investment declines in value, the portfolio is rebalanced to reflect an increased weightage in debt, it said.
According to the rating agency, the strategy will endeavour to maintain a portfolio's risk exposure at a constant multiple of the excess of wealth in the portfolio over a pre-defined floor level. The floor is computed as the present value of a minimum payoff on maturity; the floor increases gradually over the life of the fund to equal the minimum payoff at the time of maturity.
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