Monday, September 20, 2010

September 2010

With the National Securities Depository Ltd and Central Depository Services (India) Ltd now offering demat account services for the mutual fund account holders, CAMS has started an initiative where NFOs can now be applied for by investors online. The initiative called the e-NFO will make the process of applying for new fund offers less cumbersome and time-consuming for the investors. Interested investors can log on to the CAMS web site and complete the application in less than five minutes. The initiative holds more significance in light of the new SEBI regulations which mandate that all fund allotments and dispatch of statements should be done within five business days from the closure of the NFO. The initiative also provides ease of payment as the investor can choose the mode of investment – cheque/DD/online fund transfer.

Reliance Index Fund - Sensex and Nifty
Opens: September 9, 2010
Closes: September 23, 2010

Reliance Index Fund is an open-ended index fund which will invest in companies whose securities are covered in the Nifty and the Sensex. The schemes propose to invest 95-100% in equities and equity-related securities covered by the Nifty and the Sensex. They will further allocate up to 5% of assets in Cash/CBLO/Repo and Reverse Repo and Money Market. Initially, the fund house will not charge any asset management fees for this fund in their effort towards financial inclusion and to make this product more attractive for investors - especially in smaller cities or first time investors who have not participated in the success of capital markets in India. This will create a positive impact on the expense ratio. However, investors will be notified about any change in this fee structure, if proposed in future, on the company’s website at least three months in advance. Another unique feature is that dividend payout option will also be provided with quarterly, half-yearly, and annual dividend frequencies. Reliance Index Fund provides investors an opportunity to participate in India's growth story by investing in well-diversified portfolio of fundamentally strong, highly liquid and well-known companies. The biggest advantage of investing in an index fund is that firstly one knows exactly the shares the fund will invest in. Besides, for an individual investor, it is practically impossible to create a portfolio that matches an index fund portfolio. The funds will maintain the portfolio of all the securities in the same proportion as in the benchmark index. So the risk profile of this fund is less than the actively managed funds. The Scheme`s NAV may react almost in line with its benchmark. It is suitable for conservative investors especially for those who want to grow their investment in line with the index. The schemes will be benchmarked against S&P CNX Nifty and BSE Sensex respectively and both schemes will be managed by Mr. Krishan Daga.

Infrastructure Benchmark Exchange Traded Fund
Opens: September 9, 2010
Closes: September 23, 2010

Infrastructure BeES Fund is an open-ended exchange traded fund with investment objective to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Infrastructure index by investing in the securities in the same proportion as in the index. The scheme offers only growth option with minimum application amount of Rs 10,000. The scheme will allocate 95 to 100% of assets in securities covered by the CNX Infrastructure Index. It will further allocate up to 5% of assets in money market instruments, G-secs, Bonds, Debentures and cash at call. The notional exposure of the scheme in derivative instruments shall be restricted to 10% of the net assets of the scheme. The Indian economy has shown strong growth momentum over the past few years. India is an infrastructure constrained country and suffers from capacity constraints in several sectors. Hence, sustaining high economic growth requires substantial investments in the country`s underlying infrastructure. Realizing this, the government is actively emphasizing the need for faster infrastructure buildup through a combination of public and public-private initiatives. In these efforts, the government is encouraging investments in development of ports, roads, airports, electricity, etc. In doing so, it hopes to release some of the emerging bottlenecks and set the ground for sustained economic prosperity. So, one can expect that there will be a significant pick up in infrastructure spending in the coming years. This has opened doors to many opportunities for companies in such sectors. The scheme will be benchmarked against CNX Infrastructure Index and will be managed by Mr. Vishal Jain.

Pramerica Ultra Short-term Bond Fund
Opens: September 16, 2010
Closes: September 23, 2010

Pramerica Asset Managers (P), the Indian asset management company of U.S. based Prudential Financial, Inc. (PFI), launched its second product offering for the Indian market `Pramerica Ultra Short Term Bond Fund`. The objective of this open-ended debt scheme will be to provide reasonable returns, commensurate with a low to moderate level of risk and high degree of liquidity, through a portfolio comprising money market and debt instruments. This fund will provide still higher tax benefits as compared to liquid funds under the current tax laws. This fund will invest at least 80% in debt securities having maturity up to 400 days. The balance 20% may be invested in debt securities with maturity up to 3 years. The fund`s portfolio will focus on highly rated instruments and has already received the highest credit rating of AAA from CRISIL. The scheme will be benchmarked against the CRISIL Liquid Fund Index and managed by Mahhendra Jajoo, executive director & chief investment officer - fixed income of Pramerica Asset Managers.

Baroda PSU Equity Fund
Opens: September 13, 2010
Closes: September 24, 2010

Baroda Pioneer PSU Equity fund is an open-ended scheme which will invest in a diversified basket of equity stocks of domestic public sector undertakings (PSUs). The primary objective of the scheme is to provide investors with opportunities for long term growth in capital along with liquidity. PSUs operate in high growth sectors such as banking, infrastructure, oil and gas, power, minerals and are, thus, highly diversified. Only a few of the consumer-related sectors are not included in the PSUs basket. The scheme will invest 65% to 100% of assets in equity and equity related securities covered under the universe of Public sector undertakings (around 35 stocks) including derivatives with medium to high risk profile. It will further allocate up to 0% to 35% of assets in debt & money market instruments with low to medium risk profile. The scheme will be benchmarked against BSE PSU Index and will be managed by Mr. Dipak Acharya.

Fidelity India Children’s Plan (Education Fund, Marriage Fund, and Savings Fund), L&T Double Advantage Fund (Balanced Plan and Opportunities Plan), L&T MIP Advantage Fund, Birla Sunlife Infrastructure ETF, Birla Sunlife Nifty ETF, IDFC Small Cap Equity Fund, Peerless Child Plan, Pramerica Dynamic Monthly Income Fund, Kotak Dynamic Bond Fund, Baroda Pioneer Sector Focus Fund, IDFC Retirement Fund, Religare Nifty Exchange Traded Fund, Tata Natural Resources Fund, Canera Robeco Yield Advantage Fund, Benchmark Multi Asset Solutions Fund, PNB Suraksha Fund, IDFC India Consumption Fund, IDFC Infrastructure Fund, Axis Gold ETF, HDFC Cancer Cure Fund, IT BeES, FMCG BeES, Services BeES, Energy BeES, Pharma BeES, and Realty BeES are expected to be launched in the coming months.

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