Religare Monthly Income Plan (MIP) Plus NFO Analysis

NFO Period: 12th April - 11th May 2010

Fund Features

Investment Objective: To generate regular income through a portfolio of fixed income securities, Gold ETFs and equity & equity related instruments.

Type of Scheme: Open-ended Income scheme

Benchmark: 65% - CRISIL MIP Blended Fund Index and 35% - price of gold

Options Investment & Minimum amount:

Growth option: Rs. 5,000/- and in multiples of Re. 1/- thereafter.

Dividend option: Rs. 25,000/- and in multiples of Re. 1/- thereafter. (Under dividend option, only monthly dividend facility is available)

NFO on Stock Exchanges: NFO is Available on BSE STAR Platform for subscription.

Exit Load: 1% is payable if units are redeemed/ switched-out on or before 1 year from the date of allotment.

Fund Managers: Mr. Ashish Nigam (for debt and Gold ETF investments)

Mr. Vetri Subramaniam (for equity investments)

Asset Allocation:

Debt* and Money Market Instruments 65 – 90%

Equity and Equity Related Instruments and/ or Units of equity mutual fund schemes 0 – 25%

Gold ETFs 10 – 35%

Ideal for Investors

·         Looking for exposure to 3 major asset classes in a single fund.

·         Conservative Investors who want an investment with the potential to add value in varying market conditions.

·         Looking forward to enhancing returns, from their portfolio, to beat inflation.

·         Retired persons looking for a flexible and regular income stream.

Investment Rationale

·         Debt Exposure will be in short term, low to medium risk profile and high credit quality dent instruments.

·         Gold Exposure through gold exchange traded funds only and tactical buying ahead of peak season demand.

·         Equity Exposure the fund manager will adopt the bottom up investment approach to select stocks. Actively managed, outperformance or alpha is expected to come in from asset allocation decisions, further enhanced by alpha from stock selection.

USPs of the Fund

·         Multi-Asset diversification - Across different asset classes with low correlation.

·         Debt provides regular income and overall stability.

·         Equity could provide an overall kicker to the portfolio for higher returns.

·         Gold preserves purchasing power.

·         Combines income and capital growth

·         A hedge against inflation

·         Built to perform in varying market conditions.