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Birla Sun Life Capital Protection Oriented Fund
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| Birla Sun Life Capital Protection Oriented Fund | | | | Your Investments, Well Protected |
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| |  | Why Invest ? | | | In the current market scenario there has been a
significant upward movement in the interest rates. At the same time, the stock
markets have also continued to maintain their (buoyancy) positive growth
momentum. | Birla Sun Life Capital Protection Oriented Fund is a capital
protection oriented scheme with an 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.
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| An Ideal Investment
Avenue | Birla Sun Life Capital Protection fund (BSLCPF) is
an apt fit in the low to moderate risk-taking investor's portfolio (investors
who look at investing primarily in Fixed Deposits or Small savings). The fund
offers such investors an opportunity to invest in a market-linked investment
avenue without compromising on their risk profile. |
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| |  | | | | Investment Strategy | | |
The funds portfolio will comprise of high quality debt
instruments that would mature to the initial value of investment. The rest of
the portfolio would be invested in a diversified basket of growth stocks that
would be managed actively, thus giving the investor an opportunity to take an
exposure to the equity markets without worrying about the downside risk of the
markets.
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| | | | | | | | | | Back Testing of the Fund | | | To assess the range of benefit that investors can draw from this product, a
realistic scenario was built for the last 12 years. A portfolio was constructed
with the following assumptions:
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| • | Debt portion of the portfolio was assumed to be invested
at an yield of 9.5% p.a. which is prevailing yield for AAA rated corporate
bonds currently. (Source: Bloomberg) | | • | The equity portion, which would be actively managed in the
fund, was invested in an equal weighted basket of 5 of our actively managed
equity funds. | | • | A daily rolling scenario was created. As a result, 2654
scenarios were created for the 5-year plan and 3385 scenarios were created for
the 3-year plan. | | • | A 12 year time period was considered for back testing the
3 year and 5 year Capital Protected Plan during any point of time starting 1995
and ending 2007. | | • | Initial Asset Allocation for a 5 year & 3 year plan is
23 % equity, 77 % debt & 16 % equity and 84 % debt respectively. | | • | The expense ratio has not been taken into consideration
for the calculations | |
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| | | | | | | | | | Long Term Equity Investing | | | Investing in equities has always proved beneficial in the long term.
Analysis has also proved that the probabilities of earning superior returns are
higher for long-term equity investment.
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Consider this: An investment for any 3-year period
in the last 27 years of Sensex existence has existence has generated positive
returns, 80 % of the times on the other hand, investments for 1- year period
would have generated positive return only 63 % of the times. |
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| | | | | | Scheme Features | | | | Scheme Name | Birla Sun Life Capital Protection Oriented
Fund | | Type of Scheme |
A Close-ended capital protection
oriented scheme. |
| Plan & Options | The scheme offers 3 Year plan
and 5 Year plan. Each plan shall have a separate portfolio. Each Plan will have
a Dividend Payout and Growth Option.
(Default plan : Dividend Payout) | | Minimum Application Amount | Minimum Application amount for
purchase is Rs. 5000/- and in multiples of Re. 1/- thereafter during the NFO
period. | | Entry Load | Not Applicable | | Exit Load | Nil*
*On maturity of the respective plans offered under the Scheme, the outstanding
units shall be redeemed at the NAV on the maturity date and maturity proceeds
shall be paid to the unitholder, without any further reference from the
unitholder. | | New Fund Offer opens | 20th June 2007 | | New Fund Offer closes | 6th July 2007 | | Issue Price | Rs. 10/- per unit during the New
Fund Offer period | | Benchmark Index | CRISL MIP Blended Index | | Fund Manager | Debt Component: Mr. Satyabrata
Mohanty
Equity Component : Mr. Jayesh Gandhi |
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| | | | | | The Fund Managers | | | Mr. Jayesh Gandhi (Equity Component) | Mr. Jayesh Gandhi’s qualifications include CA, CFA degrees
and a Masters of International Management from Thunderbird, The Garvin School
of International Management, USA. Mr. Gandhi brings with him over 11 years of experience. He
has been with Birla Sun Life AMC since September 2004. Prior to joining BSLAMC
he has worked with Zacks Investment Research, Chicago (USA), Think Values, Salt
Lake City (USA), J V Gokal Finance & Investments Pvt.Ltd. (Mumbai), J M
Shares & Stock Brokers (Mumbai) | Other funds managed by Mr. Jayesh Gandhi: | | | |
Mr. Satyabrata Mohanty (Debt Component) | Satyabrata Mohanty is a Fund Manager with a total work
experience of around 9 years. He has been with BSLAMC since December 2000. In
BSLAMC he has experience in Fund Management, Trading and Credit Research. Prior
to joining BSLAMC, he has worked with Aditya Birla Management Corporation Ltd.
Mr. Satyabrata Mohanty is a Chartered Accountant and a CFA charter holder. | Other funds managed by Mr. Satyabrata Mohanty: | | # Value Research Ratings are a Composite Measure of
historical Risk-Adjusted Returns. For Equity and Hybrid Funds, Ratings for the
two time periods (3 and 5 years) are combined to give a single assessment of
each fund’s risk rating vis-à-vis other funds in the category. For Debt funds
and Long & Medium-term Gilt funds, the Ratings are arrived at by combining
the assessment for 2 time periods (18 months and 3 years), based on weekly
risk-adjusted performance. For Short-term and Ultra Short-term debt funds and
Short-term Gilt funds, the Ratings are based on 18-month weekly risk-adjusted
performance, relative to the other funds in category. Entry/Exit Loads not
considered. 5-stars indicate that fund is in top 10% of its category. 4-stars
indicate that fund is in next 22.5% of its category. Following is the number of
schemes in each category: Equity Diversified (178), Equity: Index (22), Equity
Tax Planning (29), Hybrid: Equity Oriented (33), Hybrid: Debt oriented (34),
Hybrid: Monthly Income (39), Debt: MT (52), Debt: ST (23), Debt: Ultra ST (56),
Debt: Ultra ST-Inst. (55), Debt: Floating Rate ST (13) Debt: Floating Rate LT
(16), Gilt: Medium and LT (43), Gilt: ST (16). Fund Ratings are as on 31 May
’07. Ranking Source: Mutual Funds Insight. | + Birla Floating Rate Fund -
The credit risk rating assigned to the schemes is mfAAA. The rating is the
highest-credit-quality rating assigned by ICRA to debt funds. Rating
methodology used by ICRA is based on evaluating the inherent credit quality of
the funds portfolio. As a measure of the credit quality of a debt fund’s
assets, ICRA uses the concept of ”credit scores”, based on ICRA’s assessment of
credit risk associated with each exposure of the portfolio taking into account
its maturity, investment objectives and policies, its management
characteristics and the creditworthiness of its investment portfolio. ICRA
reviews relevant fund information on an ongoing basis to support its published
rating opinions. Source: ICRA Ltd. |
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