Wednesday, December 26, 2007

Birla Sun Life Mutual Fund launches Special Situation Fund

Birla Sun Life Mutual Fund launched Birla Sun Life Special Situations Fund, an open - ended diversified equity scheme. The scheme opens for subscription on Dec. 17, 2007 and closes on Jan. 15, 2008. The units of the scheme will be available at Rs 10 a unit during the New Fund Offer period.


Birla Sun Life Special Situation Fund aims at generating long-term growth of
capital by investing in a portfolio of equity and equity related securities. The Scheme would follow an investment strategy that would take advantage of Special Situations and Contrarian investment style.

What is Inside?

The scheme offers growth option and dividend option. The dividend option shall have payout, reinvestment and sweep facility.

The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter.

The scheme aims at raising a minimum of Rs. 10,000,000 during the New Fund Offer Period.

Asset Allocation

The scheme aims at investing 80% to 100% in equity and equity linked instruments and 0% to 20% in fixed income securities including money market instruments. The Scheme may also invest in foreign equity securities subject to the investment restrictions specified by SEBI / RBI from time to time.

Load Structure

Entry Load:

If the amount invested is less than Rs 50 million than the scheme will charge an entry load of 2.25%. There will not be any entry load if the amount invested is more than Rs 50 million. In dividend reinvestment option, the scheme will not charge any entry load.

Exit Load:

If the amount invested is less than Rs 50 million and the units are redeemed within six moths from the date of allotment, then there will be an exit load of 0.5%.

There will not be any exit load if the amount invested is more than Rs 50 million.

Investment Strategy

Strategy would comprise of investing in companies that are currently out of favor, overlooked or neglected due to temporary fallacies like poor results, failure with regards to the product launch, factors affecting the industry, political interventions, etc. However, these companies may be fundamentally strong but market may have failed to recognize their true potential.

The Scheme may invest in such undervalued companies to take advantage of price appreciation. Investment strategy would be to identify stocks based on the above mentioned criteria and benefit from the event. These events may or may not be time bound.

The Scheme would follow a bottom-up investment approach, where investments will be selected based on specific criteria relevant to the company. There will be no bias towards size or sectors.

Performance and Management

The performance of the scheme will be measured against BSE 200 and the fund manager is A Balasubramanian

No comments: