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Our Bureau

Kolkata , Sept 27

Crisil has assigned the first-ever rating - AAA (so) - to a mutual fund based on a dynamic asset allocation (DAA) structure.

The rating indicates the highest degree of certainty regarding timely payment of the face value of the units to unit-holders.

The rating is not a comment on the NAV in relation to its face value, in case the units are repurchased any time prior to the maturity date, a Crisil release said.

The DAA strategy to be used by the MF allocates portfolio between equity and debt assets in order to maintain constant risk exposure.

If equity investments increase in value, more of the portfolio is invested in equity.

If it declines, the portfolio is rebalanced to reflect an increased weightage in debt.

The fund has furnished a set of warranties to Crisil, including a commitment to invest the equity component only in BSE 100 and BSE 500 stocks and the debt component only in securities of very high credit quality, the release added.

More Stories on : Credit Rating | Mutual Funds

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