NFO NEST
September 2011

Safety First!

There is a dearth of equity NFOs this month. Three out of the six funds figuring in the September 2011 NFO NEST are capital protection-oriented funds, one is a hybrid fund and another is a gold fund of fund. Only one is an equity fund. Capital protection-oriented funds are designed to keep your money safe. At the same time it allows you an opportunity to take a small exposure to the equity market. The returns of such funds are also more tax-efficient as compared to traditional deposits. Such funds combine investment avenues and cater to the prime requirement of all of you who want returns along with safety.

Peerless Equity Fund
Opens: September 7, 2011
Closes: September 21, 2011

Peerless Equity Fund is a multi-cap diversified equity fund. The portfolio will have optimal blend of large, mid and small cap stocks based on prevailing macro-economic and socio-political environment, both domestically and globally. The primary investment objective is to generate long term capital appreciation by investing in an actively managed portfolio predominantly consisting of equity and equity related securities diversified over various sectors. The fund will invest between 80 to 100% in equity and equity related securities and up to 20% in debt and money market securities. The investments would not have any industry, sector or market capitalization bias. The strategy would be to invest in stocks and sectors that seem attractive, exhibit strong growth or have the potential for strong growth in the medium to long term. The performance of the scheme will be benchmarked against S&P CNX Nifty. The scheme will be jointly managed by Mr. Kaushik Dani for the equity portion and Mr. Ganti N Murthy for the debt portion.

SBI Capital Protection-oriented Fund Series III
Opens: September 15, 2011
Closes: September 29, 2011

SBI Mutual Fund has launched a close-ended capital protection oriented fund called SBI Capital Protection Oriented Fund – Series III. The tenure of the fund will be 3 years from the date of allotment. The primary objective of the fund is to protect the capital invested on maturity of the fund through focused investments in equity, debt and money market instruments while also seeking to provide investors with opportunities for long-term growth in capital. The fund will allocate 82 to 100% of assets in debt, debt related instruments and money market instruments with low to medium risk profile. It would further allocate up to 18% of assets in equity and equity related instruments including derivatives with high-risk profile. Investment in debt will be in Government Securities and securities rated AAA. The equity investment will be in stock listed on NSE and BSE having a market cap equal to or higher than the market cap of the least market capitalized stock of the BSE 100 Index. The fund will be jointly managed by Rajeev Radhakrishnan and Rama Iyer Srinivasan. It will be benchmarked against CRISIL MIP Blended Index.

Birla Sunlife Capital Protection-oriented Fund Series 7
Opens: September 15, 2011
Closes: September 29, 2011

Birla Sun Life Mutual Fund has launched a close-ended fund called Birla Sun Life Capital Protection Oriented Fund - Series 7. The tenure of the fund will be 36 months from the date of allotment. The investment objective of the fund is to provide capital appreciation linked to the equity market with downside protection at the end of tenure. The fund would allocate 80 to 100% of assets in debt securities and money market instruments with low to medium risk profile. It would further allocate up to 20% of assets in option premium with high-risk profile. The fund will be jointly managed by Satyabrata Mohanty and Ajay Garg. It will be benchmarked against CRISIL Balanced Fund Index.

Axis Hybrid Fund Series 3
Opens: September 16, 2011
Closes: September 30, 2011

Axis Mutual Fund has launched a new fund named as Axis Hybrid Fund Series 3, a 3-year close-ended income scheme. In order to provide liquidity, the units of the fund will be listed on the capital market segment of the NSE and/ or any other Stock Exchange. The primary objective is to generate income by investing in high quality fixed income securities whilst the secondary objective is to generate capital appreciation by investing in equity and equity related instruments. The fund will allocate 65% to 95% of assets in debt and money market instruments including securitized debt with low to medium risk profile. On the other side, it would allocate 5% to 35% of assets in equity and equity related instruments with high-risk profile. Investment in securitized debt would be up to 50% of the net assets of the fund. The fund shall not invest in foreign securitized debt. Benchmark Index for the fund is Crisil MIP Blended Index. The fund will be managed by Mr. R. Sivakumar and Jinesh Gopani.

Sundaram Capital Protection-oriented Fund Series 6 (3 years)

Opens: September 16, 2011
Closes: September 30, 2011

Sundaram Mutual Fund has launched Sundaram Capital Protection-oriented Fund Series 6, a close-ended scheme for a period of three years. The objective of this fund would be to seek income and minimise risk of capital loss by investing in a portfolio of fixed-income securities. The fund may invest up to a maximum of 20% in equity to seek capital appreciation. The fixed income component of the fund shall be invested only in Government of India Securities and/or other fixed income instruments rated AAA. Majority of the equity allocation will be in CNX 500 index companies, and will maintain diversity. There will be no excessive stock or sector specific exposure that will enhance the risk of the portfolio. Dwijendra Srivastava is the fund manager for the debt portion and Srividhya Rajesh is the fund manager for equity portion of the scheme. The fund is benchmarked against the CRISIL MIP Blended Index.

ICICI Prudential Regular Gold Savings Fund
Opens: September 20, 2011
Closes: October 4, 2011

ICICI Prudential Regular Gold Savings Fund, is an open ended Fund of Funds scheme with the primary objective to generate returns by investing in units of ICICI Prudential Gold Exchange Traded Fund. ICICI Prudential Gold Savings Fund is a direct feeder into ICICI Prudential Gold ETF. The fund Manager is Chaitanya Pande.

JP Morgan India Focus Fund, JP Morgan E.D.G.E. Fund, Pramerica Banking and Financial Services Fund, Pramerica Dynamic Bond Fund, IDBI Income Fund, Birla Sunlife Gold Fund, Union KBC Ultra Short term Debt Fund, AIG Monthly Income Plan, AIG Monthly Income Plan, L&T Interval Fund, DSP Blackrock Global Dynamic Equity Fund, DSP Blackrock Global Allocation Fund, DSP Blackrock Global Emerging Europe Fund, Daiwa Equity Fund, Union KBC Tax Saver Scheme, SBI Global Emerging Market Fund, India Bulls Blue Fund, India Bulls Liquid Fund, UTI Credit Opportunities Fund, Sundaram Select Micro Cap Fund, Baroda Pioneer Gold and Mining Fund, Baroda Pioneer Gold Fund, and DSP Blackrock Dual Advantage Fund are expected to be launched in the coming months.