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Pioneer ITI Mutual Plans to Launch PE Ratio and Asset Allocation Plan


Pioneer ITI Mutual Fund has come out with two innovative products – PE Ratio Fund and Asset Allocation Plan. Both funds will initially open for subscription from February 15 to February 25, 2002 and will again re-open for continuous sale/purchase from March 18, 2002 onwards.

PE Ratio Fund is an open-ended scheme investing in equities and debt / money markets, with an automatic buy-sell discipline, where the extent of investment in equities will be determined by the weighted average PE Ratio of the stocks of NSE Nifty Index. The equity allocation will be done on a monthly basis - higher the PE Ratio, lower the equity exposure and vice versa.

Asset Allocation Plan is an open-ended scheme offering a choice of 5 plans, each with pre-defined weightage to equities and debt / money market instruments and has a monthly re-balancing feature.
The five plans are:
1. Pure Growth Plan (Equity 90%, Debt 10%)
2. Steady Growth Plan (70:30)
3. Balanced Growth Plan (50:50)
4. Conservative Growth Plan (30:70)
5. Inflation Hedge Plan (10:90)

Under both schemes, investors have a choice of Growth and Dividend options. The Dividend option also offers reinvestment facility. Minimum application amount is of Rs 5,000 and in multiples of Rs 1,000 thereafter in each plan. The fund will charge an initial issue expense of 2 per cent from the investor. Presently, there is no exit load in both the funds.