Birla Sun life Capital Protection Oriented Fund Series 1- NFO Analysis

NFO Date: 5th Feb 2010 to 5th March 2010
Fund Features
Scheme Objective : To seek capital protection by investing in high quality fixed income securities maturing in line with the tenure of the scheme and seeking capital appreciation by investing in equity and equity related instruments.
Type of Scheme: A Close Ended Capital Protection Oriented Scheme.
Bench Mark Index: CRISIL MIP Blended Index
Min Investment: Minimum of Rs. 5,000/- and in multiples of Rs. 10/- thereafter during the NFO period.
Liquidity: The scheme will have duration of 27 months from the date of allotment.
Listing: The scheme is a close ended Scheme and the units offered under the Scheme will be listed on one or more recognized stock exchanges as may be decided by AMC within 30 days from the closure of the NFO Period.
Entry Load / Exit Load: Nil (No redemption/repurchase of units shall be allowed prior to the maturity of the scheme. Investors wishing to exit may do so through stock exchange mode)
Options: Growth Option only.
Fund Manager: Mr. Satyabrata Mohanty
Investment Strategy
The fund will largely invest in debt and a small portion in equity.
Debt Strategy
The debt investments will be made in CRISIL approved AAA / AAA (so) rated securities only.
The duration of such instruments would be 27 months or lower, calculated from the date of fund's allotment.
The debt portion will be managed passively.
Invest in debt securities as much amount as required to reach 100 at maturity.
Equity Strategy
Equity portion will be managed actively with absolute return bias.
Invest in themes where ever there is investment opportunity without having any market capitalization bias.
The Fund intends to play the ongoing themes and sector preferences.
It is going to be an 'all - cap' portfolio.
The sectors which look positive in the current market
Capital Goods, Infrastructure & Power
Consumer Discretionary and IT & Commodities
Banking & Financial Services
The fund may also look at opportunities in some high growth emerging sectors and Mid-cap stocks
Why invest in this fund?
This fund is aimed at offering better than high quality deposit returns for which it intends to take controlled exposure to equity, after providing for capital protection at the end of the tenure.
The Fund's tenure of 27 months is designed to offer triple indexation benefit to investors.
The tax saving avenues like NSC, post office deposit etc. have a lockin of 5-6 years.
Investing in company deposit could potentially yield higher, but the risk level could be higher compared to a diversified portfolio of AAA rated securities. The interest from such deposits is again subject to income tax, shaving off upto 1/3 of total return.
Ideal for Investors
The fund is targeted for conservative savers who seek returns that could be higher than high quality conventional deposits, without compromising the safety of the portfolio.

Kotak TaxSaver - Growth

Scheme Snapshot

Inception: 21st Nov 2005

Corpus: Rs. 525.24 cr (30-Nov-09)

Fund Manager: Anurag Jain

Minimum Investment: Rs.500

Entry/Exit Load: Nil (3 Yrs lock-in)

Latest NAV: Rs 15.85 (04-Feb-10)

52 Week High: Rs 16.66 (29-Dec-09)

52 Week Low: Rs 8.04 (09-Mar-09)

Scheme Objective

To generate long-term capital appreciation from a diversified portfolio of equity and equity related securities and enable investors to avail the income tax rebate, as permitted from time to time.

Key Analysis

·         Currently the scheme has large cap stocks exposure of 57%, midcap 38% and small cap 2%.

·         Top sector exposure: Banking, IT Software & Refineries.

·         Top company exposure: ONGC Reliance Industries & IDFC.

·         The scheme has maintained a good mix of Large & Midcap stocks with a minimal exposure to small caps in order to maintain risk & returns balance.

·         The scheme has delivered high risk adjusted returns, indicated by its Sharpe Ratio.

·         Investment Analysis shows, the scheme has generated capital appreciation in both monthly SIP & Lump sum investments.

·         Ideal Equity Investment Avenue for investors looking for Tax as well as Wealth Planning.

HDFC Tax Saver Fund - G

Scheme Snapshot
Inception: 13th June 1996
Corpus: Rs. 2035 cr (30-Nov-09)
Fund Manager: Vinay Kulkarni
Minimum Investment: Rs.500
Entry/Exit Load: Nil (3 Yrs lock-in)
Latest NAV: Rs 193.04 (04-Feb-10)
52 Week High: Rs 196.25 (29-Dec-09)
52 Week Low: Rs 83.66 (09-Mar-09)
Scheme Objective
The fund plans to provide tax benefits along with capital appreciation.
Key Analysis
• Currently scheme has 64% exposure to large cap stocks, 31 % in midcaps and 0.07% to small cap stocks.
• Top sector exposure: Banking, Pharmaceuticals & IT Software.
• Top company exposure: SBI, ICICI & Dr.Reddys.
• The Fund Manager has delivered superior returns since inception by maintaining high exposure to large cap stocks with some exposure to mid caps and minimal exposure to small caps stocks.
• The scheme has delivered high risk adjusted returns which is indicated by Sharpe Ratio.
• Higher Jensen Ratio of the scheme shows Excellent Stock Selection by Fund Manager.
• Investment Analysis shows, the scheme has generated capital appreciation in both monthly SIP & Lump sum investments.
• Ideal Equity Investment Avenue for investors looking for Tax as well as Wealth Planning.