Investors in Mutual Funds to comply with ‘KNOW YOUR CLIENT’ (KYC)…

The following rule has been brought into force and all MF investors are supposed to comply with it. Its called the KYC. There is a form that you need to fill up and submit. Its very simple and easy too. Just leave a comment with your email ID and I shall send the form to you

Here is more information about the same

KNOW YOUR CLIENT (KYC)
In order to comply with regulatory provisions under the Prevention of Money Laundering Act 2002, Rules issued thereunder and related guidelines/circulars issued by SEBI, KYC formalities are required to be completed for all Unit Holders, including Guardians and Power of Attorney holders, for any investment (whether new or additional purchase) of Rs. 50,000 or more in mutual funds. For the convenience of investors in mutual funds, all mutual funds have made special arrangements with CDSL Ventures Ltd. (CVL), a wholly owned subsidiary of Central Depository Services (India) Ltd. (CDSL))

DOCUMENTS AND INFORMATION TO BE PROVIDED BY INVESTORS
Investors in mutual fund schemes have to provide

1. Proof of Identity
2. Proof of Address
3. PAN Card
4. Photograph

The originals of these documents along with a copy each to be presented and the original will be returned after verification. Alternatively, investors can also provide an attested true copy of the relevant documents. Attestation could be done by Notary Public/ Gazetted Officer/ Manager of a Scheduled Commercial Bank
Instead of providing the required documents again and again to different mutual funds in which one would like to invest, CVL, on behalf of all mutual funds will carry out the process of KYC and issue an acknowledgement
Investors have to provide the relevant documents and information ONLY ONCE for complying with KYC. After that Investors could invest in the schemes of all mutual funds by merely attaching a copy of the KYC acknowledgement slip with the application form / transaction slip when investing for the first time in every folio (Post KYC) in each Mutual Fund house, without the necessity to submit the KYC documents again
Any subsequent changes in address or other details could be intimated to any of the POS (with relevant documentary evidence) and the same will get updated in all the mutual funds where the investor has invested
This facility is being provided absolutely FREE OF COST to the investors. To begin with, investors investing Rs.50,000 or more will have to comply with KYC effective from 1st February, 2008

WHERE TO COMPLETE THE FORMALITIES
Investors could complete the formalities by submitting the KYC form and relevant documents at the Points of Services (POS). To start with, these POS will be the select branches / offices of mutual funds, registrars and select branches of some distributors. The application form for complying with KYC will be available from these POS. The application form could also be downloaded from the websites of all mutual funds and CDSL http://www.cdslindia.com/. Investors could contact offices of mutual funds, registrars and mutual fund distributors (ARN Holders) for further details and assistance

I’m gonna be AMFI certified soon…

Heyyyyyyyyyyyyyyyyyy………………….

I just cleared my AMFI examination!!!

And I am getting registered with them as an independent distributor soon…

It was yet another great moment in life when I got through my AMFI examination

AMFI is the Association of Mutual Funds in India. Any person who wishes to sell mutual funds has to be certified by this body. Only then can he sell them

I have been a big fan of mutual funds from years together. I have done a lot of research on each and everything related to mutual funds. Further, one fine day, I thought, “Why not sell mutual funds alongwith life insurance?” To turn this thought into reality, I started finding the ways to do it. And I got to know that I have to clear this exam

There was a book written by the AMFI which costs Rs 400. However, with the kind of knowledge that I had on mutual funds, I was 100% sure that I will clear the exam without reading this book. However, I did not wish to take a chance as the exam fee was Rs 1000. Even if I fail by 1 mark, I will have to pay another Rs 1000. So, its always good to pay Rs 1400 (400 for the book and 1000 for the exam) and study properly and clear the exam

I ordered the book which arrived in 4-5 days. And I started preparing. The exam was supposed to be held on 8 Feb 08. My preparation was not upto the mark in the beginning. I had a lot of commitments and was tied up with life

However, on the deadline day, 07th Feb, I made a serious venture and studied the book word by word. My God! It was a 350 pages book and I was able to cover about 180-200 pages. The next morning, I just started glancing the remaining portion. Almost everything was known to me. It was mainly dealing with marketing ethics which I had learnt in my classes of BCom and more importantly, I have followed them through life. It dealt with the kinds of funds, their operations, expense ratios, limits, etc which I had in my mind already as I have the habit of reading the offer documents (which are around 100 pages) of almost every mutual fund that comes. So, it was a cakewalk in most of the lessons. However, there were some lessons which I was learning for the first time. I concentrated more on them

And finally, it was 1.30 pm and my exam began. I answered all the questions to the best of my knowledge. The time allotted was 2 hours. However, it was over in 25-30 minutes. I revised everything again. There was a negative marking system too and so, I had to be very careful. It was about an hour now and I was not able to sit. I just submitted the paper and the result flashed on the screen

“Congratulations”

“You cleared the test”

“Your score is 75%”

Well, that was a beautiful moment that delighted me

I believe, I had answered about 90% of the question correctly and the remaining wrong answers brought my score to 75%

Hmmm…

Good going…
.

Immediately, I ran to the bank, gathered money and took the next step. I had to register myself with AMFI after this exam. I took a copy of the scorecard and the form that I was supposed to fill up. I had to take another DD of Rs 500 for the registration fee. A lot of cash outflow…

I got the DD and sent the application for registration

I am now awaiting for my ARN (AMFI Registration Number)

Once I get that, I shall be an independent mutual fund distributor

Yet another value addition to the services that I offer to my clients

And a lot of thank yous to the people who helped me in the process!!!

Life has been beautiful as well as ugly. On the negative note, I would also like to say that I have not been able to clear my CA examination. The struggle is on. However, its getting more tougher

Lets see, where life takes me…

Birla Sun Life Special Situations Fund… Expect MORE than the usual!!!

Expect MORE than the usual ……………. From your Equity Portfolio

The investors never had it so good. Over the last three years, the equity markets have generated very good returns. During this period, many companies within India Inc. turned around, struck Mergers & Acquisitions (M & A) deals, inducted Private Equity (PE) players and de-merged

Companies undergoing these and many more such special situations unlocked more value to shareholders than they would have otherwise done

Do these special situations exist in India? Well, yes, special Situations in India are actually on a rise

The vibrant Indian Economy is driving M&A and PE Deals to a higher level and is proving as a hot bed for Private Equity Investments. The Following Table shows the rise in the number of special situations in the Indian Market

Special Situations like these have a positive impact on the stock price of the companies and thus provides an opportunity to the investor to get incremental gains than their regular diversified equity investments

Special Situations – Bringing Significant Extra Gains in a High growth Equity Portfolio
Special Situations may occour in companies irrespective of their Sector, size or market condition. Special Situations can occour at any point of time in the Life-cycle of a company. They can also occour multiple times for a company
Some of these special situations which may have a positive impact on the Company’s stock are

• Turnaround Stories
  Strong but under performing companies with potential to turnaround
• Mergers, PE & Takeovers
  Potential candidates of M&A or attracting PE investments
• De-mergers
  Diversified companies that intend to de-merge its existing businesses
• Restructuring Businesses
  Companies entering into new business streams or restructuring the existing portfolio
• Buy Back / Open Offers
  Potential candidates for delisting or promoters increasing the stake
• Asset Plays
  Intrinsic Value is greater than the market price of Stock i.e. Companies with land banks etc
• Out of Favor Stocks
  Companies that are currently out of favor but are fundamentally strong
• Sector Related Developments
  Companies in sunrise sectors Sectors affected by favorable policy announcements

Have you benefited from any of these Special Situations?
Special Situations like the ones mentioned, provide an opportunity to the investor to get incremental gains than their regular diversified equity investments. However the key lies in identifying these situations…
Let us see three actual cases of Special Situations in the recent Past and how the investors have benefited from each of these

United Breweries Holding: The Acquisition story

UB Holding is the holding company in United Spirits & Breweries and Kingfisher Airlines apart from having stakes in Chemical, Infrastructure and other diversified businesses

Special Situations

• Sep ’06: UB Group plans to consolidate all spirits business under United Spirits
• June ’07: Acquires 26% stake in Deccan Aviation and makes open offer to acquire additional stake of 20% thus consolidated market share to over 30%

Result
Stock price appreciation of 395.31% * in 14 months

(Absolute returns from September ’06 to 30th November ’07)

Aban Offshore: Listing of Subsidiary
Aban Offshore is one of India’s largest offshore drilling contractor in the private sector, offering drilling and oil field services for offshore exploration and production of hydrocarbons to the oil industry in India and abroad

Special Situations

• June ’06: Acquires stake in Sinvest ASA (a Norweign company in the same sector)
• September ’07: Acquires rigs from another norweign company and in October ’07 it announced plans to list it’s subsidiary Aban Singapore on Singapore Stock Exchange

Result
Stock price has appreciation of 300%* in 17 months

(Absolute returns from April ’06 to 30th November ’07)

Balaji Telefilms: Adding New business line
Founded in 1994, Balaji Telefilms Limited, a media company, engages in the production of television serials in various Indian Languages

Special Situations

• April ’07: Announced a JV with Star TV for rollout of new TV channels in South India

Result
Stock price appreciation of 117%* in 7 months

(Absolute returns from April ’07 to 30th November ’07)

Unique Value Proposition

• A dedicated fund for Special Situations to evaluate the value unlocking potential of select stocks
• Special situations bring incremental gains
• The number of special situations is growing rapidly which means increasing special situations to take advantage off
• A unique investment strategy to identify potential special situations
• An investment style that focuses on immediate as well as long term gains
• An investment and fund management expertise of over 12 years by Birla Sun Life Asset Management Company Ltd

About the Fund
Birla Sun Life Special Situations Fund endeavors to generate long-term growth by identifying stocks that may have the potential for special situation. Stocks that are undergoing or have undergone such a situation are also potential picks
Most special situations often result in incremental value addition to a stock/business. This may get reflected in the price within a short period or gradually depending on the special situation that the company is in
The objective of the scheme is to generate 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

Scheme Features
The Scheme may invest in Foreign equity securities subject to the investment restrictions specified by SEBI / RBI from time to time. Under normal circumstances, the Scheme shall not have an exposure of more than 25% of its net assets in foreign securities, subject to regulatory limits

Type of Scheme
An Open Ended Diversified Equity Scheme

New Fund Offer Price
Rs. 10 per unit plus applicable entry load

Opening Date of NFO
17-Dec-07

Closing Date of NFO
15-Jan-08

Plans & Options Available
Dividend (Reinvestment/Payout/Sweep) & Growth

Subscriptions
Rs. 5,000/- and in multiple of Re. 1 thereafter per application under each plan

Redemption
In Multiples of Re. 1/-

Load Structure
Entry Load (including SIP)

• For purchase of units less than or equal to 5 crores: 2.25% of the applicable NAV
• For purchase of units more than Rs. 5 crores: Nil
• Dividend Reinvestment option: Nil

Exit Load (including SIP)

• For purchase of units less than or equal to 5 crores: 0.5% of the applicable NAV(within 6 months from the date of allotment)
• For purchase of units of more than Rs. 5 crores: Nil

Benchmark Index
BSE 200

Fund Manager
A Balasubramanian

For more details on the Scheme Features, please refer to the Offer Document

Asset Allocation & Investment Pattern
The asset allocation pattern of the scheme under normal circumstances shall be as under: (percent of investible corpus)
Equity and Equity related Instruments- Medium to High risk- 80%-100%
Fixed Income Securities (including Money Market Instruments)- Low risk- 0%-20%
Investment in Securitised Debt papers may be made upto 5% of the net assets of the Scheme

Downloads

• Application Form
• Offer Document
• Presentation
• One Pager

Mutual Fund investments are subject to market risks

Please read the offer document carefully before investing

You may write the ARN Number as ARN-29889 and Sub-broker code as 222370001 for any mutual fund investment

PAN cards must for MF investors from New Year…

And now PAN CARD is MANDATORY for mutual funds too…

If Indian fund houses thought that they could once again plead before the powers-to-be and get another reprieve about accepting investments without a PAN card, they better think again. The finance ministry has told Amfi, a trade body of Indian asset management companies, that every investment made into a fund will compulsorily have to be accompanied by a valid PAN card from January 1, 2008. For the last few months even proof of having applied for a PAN card was sufficient for investing in mutual funds

Amfi members had recently convened a meeting — the agenda under discussion being the fast approaching deadline making PAN mandatory — as these players feared a shift in investments to other instruments. In a letter dated November 5, the ministry has said that unlike what happened in mid-2007 , there would be no relaxation in the deadline. In July 2007, Sebi had relaxed the deadline for compulsory PAN cards for MF investments from July-January 1 of 2008

However Amfi members are not pleased. They believe the government should create a level-playing field among various participants in the financial system. “Why should only the mutual fund industry be singled out, when it is anyways in the lowest risk category,” questions Amfi chairman AP Kurien. Considering that funds accept and pay money only through banks, there is a clear audit trail, he points out. “There is no question of unaccounted money coming in,” he says

SEBI waives load on bonus and reinvested dividends…

Hip Hip Hurray!!!

A mutual fund investment will no longer be such a heavy cross to bear. A small investor’s campaign to keep bonus units and reinvestments free of any charge has borne fruit after three years. The investor, VT Gokhale, told ET that the Securities and Exchange Board of India has written to him saying entry and exit loads should not be charged for units given as bonus or against reinvested dividends. This means only original investments can attract a levy, and all further gains will accrue to the investor — without any cuts

“It’s a major victory for investors who have been helplessly losing a part of their legitimate earnings for no reason,” Mr Gokhale said. SEBI had, a few days back, communicated to Mr Gokhale a decision taken by Association of Mutual Funds in India (AMFI), not to charge entry/exit load on dividends. “SEBI has accepted the AMFI recommendation,” says the communiqué from the market regulator, a copy of which is with ET

SEBI recently proposed that investments done directly — that is, without an agent — shall not attract an entry load, typically about 2% of the proposed investment. That, coupled with the latest communication, should make mutual funds cheaper for investors

An entry load is a charge an investor pays for buying mutual fund units and the exit load is what he pays for selling them. Having entered a scheme once, investors earn dividends that they can take in cash or put back into the scheme to get more units. Occasionally, the fund manager converts earnings from the scheme into units and distributes them to the investor proportionately. Mr Gokhale pointed out that a bonus or dividend would amount to gains from such investments and not a further purchase

Currently, some fund houses charge exit loads on these reward units as well, if redeemed before a certain period. In effect, the fund is charging an exit load on an investor’s initial investment as well as the reward units. “This is highly unethical,” Mr Gokhale said

He took up the matter with SEBI in April 2005. His case related to UTI’s children career plan that had charged him an exit load of Rs 1,198.22 on additional units. After his protest, the fund house refunded him the amount, but didn’t address the issue. Currently, all open ended funds charge an exit load if the investments are redeemed before a certain period — usually six months. This is done to discourage the investor from rapidly churning his investments in the fund, as it could affect the fund’s stability

Source: Economic Times

Gain from the Real Estate Boom in India… ICICI Prudential presents the Real Estate Securities Fund…

ICICI Prudential Real Estate Securities Fund (The scheme will not be directly owning or holding real estate properties.) is a 3-year close-ended debt fund, designed to invest in Real Estate Sector and real estate oriented sectors like Cement, Construction, Metals, Hotels, Retail, Banks & Finance Companies etc

The scheme will

• Predominantly invest (51% to 100%) in high yielding debt securities issued by companies that are associated with or benefitting (directly / indirectly) from the real estate sector
• Invest up to 49% in equity of companies, which are engaged in industries that benefit directly or indirectly from the Real Estate Sector or have substantial investments in property (incl. Land holdings)

The initial allocation of the fund will typically be 70% in debt instruments and 30% in equity and equity related securities

Why Invest in Real Estate Securities?

With the economy growing rapidly, demand for real estate across various market segments has been growing exponentially. In FY03, there were a few regional players in the sector and the market capitalisation of the sector was about Rs.100 cr. Developers are acquiring national footprint and the market capitalisation of the sector is over Rs.3,00,000 cr

Real estate in India has broadly 4 segments: Residential, Commercial, Retail and Hospitality. We believe that there are various growth drivers that would catalyze the demand in these segments

Residential

• Shortage of over 20 million housing units and an incremental demand of 8-10 mn units p.a
• Falling household sizes, increasing urbanisation and affordability are driving the growth of residential real estate

Commercial

• Over 300 mn sq ft of demand by 2010.3 Investment of $ 36bn to meet demand by 2010
• India’s services sector is fuelling the increase in employment opportunities leading to explosion of commercial (office complexes) real estate. As per Nasscom reports, 2mn jobs will translate into 200mn sq ft of IT / ITES office space demand
• As an example, existing office area of Infosys stands at 11.5msf whereas its projects under development include 9.4msf

Retail

• Investment of $ 25bn required to meet demand by 2010
• 700 malls expected to come up by 2010 in India. This translates to 212 msf space of organized retail space
• Organised retail market to grow from current US $7 bn to US $35 bn in 2010
• For example, Pantaloon from 1.9m of retail space in CY05 and 3.1msf in CY06, plans to ramp up to 9.7msf in 2007 and 29.2msf in 2010
• Increase in spending power has led to demand for malls and multiplexes adding to the boom in Retail Real Estate

Hospitality

• The hotel room supply has not been able to keep the desired pace with the growing need for hotel accommodation
• Total number of hotel rooms in India is less than the number of rooms in Tokyo
• India is becoming a popular tourist and commercial destination, which is pushing the growth in Hospitality sector. According to Department of Tourism, Govt of India reports international arrivals are expected to grow from 3.9mn in 2005 to 9mn in 2016

As a result of all these, the demand potential for real estate in India is estimated to be huge. We believe that such a demand – supply scenario presents a huge investment opportunity in Real Estate

*Sources: Bloomberg, NHB, UBS Research, Deutsche bank research report – Building up India May 2006, Motilal Oswal Securities, Real Estate Gold Rush SSKI

Why Invest in this fund?

The Fund aims to capture the benefit of

• High yield offered by debt securities issued by reputed real estate developers
  Real estate developers broadly depend on two major sources of finance (besides net owned funds) to sustain their growth i) borrowing from banks (loans) and ii) borrowing from the market (raising funds). The amount of loan they can receive from banks is subject to RBI norms and evidently is not adequate to capitalize their plans. Thus, the source that can facilitate developers to scale up their expansion is market borrowing. It is because of this and the high margin potential, the real estate companies are in a position to offer a higher yield as compared to traditional manufacturing businesses

High Demand – High Growth – High Margin – Need for More Capital – High Yield

• Relatively high-growth oriented infrastructure-related sectors
  The fund will invest in equity of companies, which are engaged in industries that benefit directly or indirectly from the Real Estate Sector or have substantial investments in property (incl. Land holdings), which might affect overall business valuations. Such industries include Real Estate Development, Banks & Finance Companies, Cement, Construction, Metals, Hotels, Retail etc

What are the key risks to the investors in this fund?

• Credit risk
  Credit Rating of real estate companies is generally lower compared to the similar sized companies with similar growth rates. This happens because the rating is assigned to the issuer based on its ability to make ‘timely payments’, rather than ‘ultimate payments’. Since time cycle of completing a development project involves a lot of steps including several types of approvals, obtaining title, development, selling etc. The longer chain of actions implies a potential delay of completing the project and consequent possibility of delayed payment. We propose to minimize the risk by seeking to invest only in companies that have large and established businesses and have a proven credit track record
• Market risk
  Real estate sector is cyclical in nature and sensitive to short-term demand-supply and prevailing interest rates. The sector is vulnerable to time decay resulting in conversion risk. Moreover, there is no entry barrier for a low scale real estate business that may affect the pricing capacity of the corporate / organized players. Due to these factors, the real estate sector is perceived to be more risky than its traditional counterparts. To mitigate the risks, we seek to invest debt component of the portfolio only with large and established players, who have been into real estate business for long and have weathered different real estate cycles and provide unencumbered assets as security towards the borrowing from us
• Liquidity Risk
  Debt securities issued by real estate companies have relatively lower liquidity. To manage this risk, the Fund is designed as a close ended Fund

Key Features

Type

A 3 year close-ended Debt fund

Options

• Retail Option and Institutional Options
• Sub-options: Growth or Dividend
• Default option: Retail
• Default sub-option: Growth
• Under Dividend sub-option dividend payout facility is only available

Minimum Application Amount

• Retail Option- Rs 5,000 and in the multiples of Re.1 thereafter
• Institutional Option- Rs 5,00,00,000 and in the multiples of Re.1 thereafter

Entry Load (Both Options)

Nil

Exit Load (Both Options)

Nil on Maturity. Redemptions made during the repurchase facility period will attract, for the present, an exit load of 3% of the amount sought to be redeemed under the Scheme. In addition, being a close-ended scheme, for redemptions made during the repurchase facility period, the balance proportionate unamortized new fund offer expenses will be recovered in accordance with SEBI Circular dated April 4, 2006

*The indicative list of Industries in which the Scheme will not invest are Software, Petroleum Products, Media & Entertainment, Oil, Industrial Products, Consumer non durable, Pharmaceuticals, Industrial capital goods, Auto, Transportation, Telecom, Fertilizers, Auto Ancillaries

To download the Offer Document, click here
To download the Application Form, click here
To Invest Online, click here

When investing into a mutual fund, you may wish to use the the following codes

Distributor Code: ARN 29889

Sub Broker Code: 222370001

Disclaimer

Mutual Fund Investments are Subject to Market Risks

Please Read the Offer Documents CAREFULLY Before Investing

LIC Presents the Top 100 Fund…

Economic Indicators

• Economy has grown at 9.3 % in Q1 07 – 08
• Index of Industrial Production (IIP) for Q1 07 – 08 has been encouraging on the back of robust manufacturing growth
• Inflation hit a five-year low of 3.23% (on 15th September 2007). Latest figure as on 22nd September 2007 is 3.42%
• Interest rates have remain unchanged
• Tax collection figure surpasses estimation
• STT have added Rs 3100 crores to the Government’s kitty
• Exports grew by 18.36% over previous year
• Fiscal deficit targeted to be contained at 3.3% of GDP

Global Scenario

• Fed cuts rate – both overnight lending rate as well as the discount rate by 50 basis points each
• A further cut by 25 basis points in Fed rate has been announced on 31st Oct 07
• Unprecedented FII’s inflows of Rs 6,61,460 Crores till Oct 07 into our system

Recent Events

• Q2 results have been in line with the market expectations barring some sectors/companies may get affected due to Rupee fluctuation
• A further softening in rate by the US Federal Reserve would bring in abundant money into our system

Concerns

• Despite strong fundamentals, liquidity driven rally is likely to have unpredictable volatility in the market
• Sub-prime related issues may affect the market occasionally
• Political risk remains the main challenge – events will determine the market response

Risk vs. Opportunities

• Inherent strength in the Indian economy beats the risks attached to it
• Intermittent volatility/corrections in the capital market are unlikely to hamper the growth prospects in the economy
• The only investment that gives inflation-adjusted return – “EQUITY”

Key Measures

• GDP growth projected to remain between 8.5 – 9%
• Agricultural growth to be accelerated to 4 % from the present rate of 2 %
• FY 08 inflation to be contained at 5% and the same for the medium term to be maintained at 3%
• Appropriate steps to be taken to tackle excess liquidity

Strength & Opportunities

• The economy of India is the fourth largest in the world as measured by purchasing power parity
• XIth plan covers an economic reform program for developing basic infrastructure to improve the lives of the rural poor and boost economic performance
• The Eleventh Five Year Plan has set a target of an average annual GDP growth of 9 per cent
• Huge Infrastructure Development planned for XIth plan. Outlay revised to US $ 490 billion
• The beneficial sectors would be engineering, capital goods, construction, power, telecom, steel, cement, etc
• Outlay for education and healthcare has also been impressive
• Infrastructure development would positively impact the Logistics & Financial service sector besides supporting the rural economy
• The emerging markets i.e. China, India, Russia are driving the world growth and economy
• Investors are convinced that these economies have become decoupled from the US
• The improvements in these economies have attracted a more diverse group of investors like the pension funds, central banks, university funds etc
• India is one among the 12 countries when the stock market capitalization rose to $1000 billion
• Becoming a trillion dollar economy augurs well for the stock market, as stock markets in eight out of ten countries had risen in the one year after their economies first crossed this mark
  (Source : Credit Suisse)

Key Fund Attributes

A 36 -month close-ended equity fund that will get automatically converted into an open-ended equity fund

Investment objective

To provide long-term capital appreciation by investing in equity and equity related instruments from the universe of CNX 100 index

Entry Load

NIL

Exit Load

Units will be redeemed only after recovering the balance unamortised expenses

Minimum Investment

Rs 5000/- & thereafter in multiples of Re 1/-

Options

The Scheme offers two options, i.e., Dividend & Growth Option

New Fund Offer

Rs 10/- per unit during NFO period

NAV

NAV will be released once in a week, i.e., on every Wednesday or immediate next business day if Wednesday happens to be a holiday

Liquidity

Investors can repurchase their investments once in a week during close-ended period and on all business days after the scheme becomes open-ended

Asset Allocation
Equity & equity related: 80 – 100% (Medium to High risk)
Debt & Money Market: Upto 20% (Low to Medium risk)

Why Close-ended?

Equity investments, over a reasonable period (of 3 – 5 yrs) have always yielded higher return

Why LICMF TOP 100?

• CNX 100 is constituted by taking 50 stocks of Nifty and 50 stocks of Jr Nifty
• Captures mid-cap,small-cap as well as large cap stocks
• These companies represent 22 broad sectors lending support to our economy, i.e. Auto, Banks & Financial services, Cement, Power, Metal (ferrous & non-ferrous), Pharma, IT, Telecom, Construction, FMCG, Capital goods, Forging, Hotel, Logistics, Oil & Gas, Petrochemical & Refineries, Textiles etc
• Market Capitalization of CNX 100 represents 62.4% of the total traded Market Capitalization
• The average traded value of the 100 stocks is approximately 56% of all traded stocks on NSE
• Constitutes varied Market Capitalization ,i.e., Minimum Mkt cap being Rs 1003.70 Crs and Maximum Mkt cap is Rs 3,19,022.76 Crs

Major Sectors Under CNX100

BANKS

• Constitute 13 % to CNX 100 having Market capitalization of Rs 4,29,040 Crs
• Represented by 5 private sector and 11 public sector banks
• Credit growth, diversification in agriculture and entry of corporate in agriculture will prove beneficiary to Banks with extensive semi-urban/rural network

FINANCIAL SERVICES

• Constitute 4% to CNX 100 having Market capitalisation of Rs 1,16,523 Crs
• Represented by 6 companies like LIC HFL, HDFC, IDBI, IFCI, IDFC, Reliance Capital
• The sector is likely to remain buoyant with housing and infrastructure financing driving their growth

ENGINEERING

• 2.47% to CNX 100 having Market capitalization of Rs 80,466 Crs

CEMENT

• 2.75% to CNX 100 having Market capitalization of Rs 89,648 Crs. & represented by 4 companies

CONSTRUCTION

• 3.15%to CNX 100 having Market capitalization of Rs 1,02,771 Crs represented by GMR Infra and J P Associates

POWER & POWER EQUIPMENT

• 12.88% to CNX 100 having Market capitalization of Rs 3,95,974 Crs. & represented by 8 companies like NTPC, REL, Tata Power, Suzlon, ABB,BHEL, BEL, Siemens
• Power deficit at present is around 10 % (approx)
• Power for all by 2012 means huge capacity requirement of 1,00,000 MW
• The above sectors have been market performer and are likely to be so with the booming of construction and infrastructure developments

TELECOM

• 10.09% to CNX 100 having Market capitalization of Rs 3,28,952 Crs
• Total subscriber base by September 07 has been 249 mn
• Total telecom and wireless penetration till September 07 is 21.9% and 18% respectively
• Broadband subscriber base as on Sep 07 was 2.67mn
• To meet the target of internet/broadband of 40m/20m by 2010 huge investments are required

OIL N GAS, PETROCHEMICAL & REFINERIES

• 20.06% to CNX 100 ; Market capitalization of Rs 6,53,768 Crs
• Increased oil demand has shot up the prices
• Oil exploration projects are receiving more attention
• Alternate sources like Renewable energy and Gas will be more in demand as the reserves of fossil fuel get consumed

METALS

• 7.09% to CNX 100 ; Market capitalization of Rs 2,30,972 Crs
• Infrastructure and Construction demand will keep the sector buoyant

OTHER SECTORS

• The other sectors which have representation in the CNX 100 are IT, Auto, Logistics, Hotel, Media & Entertainment, Textile products etc

Benefits

• Well-researched and actively traded stocks
• Focused selection of Stocks
• These stocks are the market movers
• At one shot, investment in majority of these stocks take place for the investor
• Focused approach for investment for the fund manager
• Though the stock picking will be from the 100 stocks in the CNX 100,yet it’s not a index fund.The scheme will have the discretion of investing/ not investing in any of the stocks
• Ultimately an opportunity to create wealth with the leaders in the Capital Market

PAN Becomes Mandatory

• ANY INVESTMENT IN THIS NFO AS PER SEBI REGULATIONS WILL REQUIRE PAN CARD OR PROOF OF HAVING APPLIED FOR PAN
• Submission of PAN Card copy / application for PAN in 49A Compulsory
• NFO application form includes Form No. 49A / instructions
• LICMF will bear the cost of PAN Application charges of Rs. 67/-(only for NFO)
• Agents to submit PAN application together with NFO application to Karvy
• Karvy will acknowledge Form No. 49A
• Agents to submit NFO Form with Form No. 49A acknowledgement along with Cheque/DD to Bank

Statutory Details

LIC Mutual Fund has been set up as a Trust sponsored by Life Insurance corporation of India.LIC Mutual Fund Asset Management Co. Ltd is the investment Manager to the Fund

RISK FACTORS

Mutual Funds and Securities investments are subject to market risks and there is no assurance and no guarantee that the objectives of the Mutual Fund will be achieved. As with any investment in stock and shares, the NAV of the units issued under the scheme can go up or down depending on the factors and forces affecting the capital markets. “The Sponsor is not responsible for or liable to any loss resulting from the operations of the scheme beyond their initial contribution of Rs.2 Crore towards the setting up of the Mutual Fund.” Past performance of the sponsor/ AMC/ Mutual Fund does not indicate the future performance of the schemes of the Mutual Fund

SCHEME SPECIFIC RISK FACTORS

LIC MF Systematic Asset Allocation Fund is the name of the scheme and does not in any manner indicate either the quality of the scheme,its future prospects or returns.The NAV of units of the scheme may be affected by change in general level of interest rates.
Please read the Offer Document before investing

Thank You

When applying for a mutual fund, you may use the following codes

Distributor Code: ARN 29889

Sub Broker Code: 222370001

Disclaimer
Mutual Fund Investments are Subject to Market Risks
Please Read the Offer Documents CAREFULLY Before Investing

The Global Infrastructure Race is ON…Presenting Kotak Indo World Infrastructure Fund !!!

‘By 2030, the world will consume twice as much electricity as it does today if government policies remain unchanged’

‘Road transport infrastructure will need an estimated global investment of US$ 220 – 290 Billion a year, from now on till 2030′

With an ever-rising population and increased urbanization, better infrastructure facilities
are imperative. Factors like strong economic growth and outsourcing further emphasize the
need for infrastructure. Better infrastructure like roads, ports, airports, telecom, etc., in turn
leads to higher economic growth

“Infrastructure gap in the country was holding back economic growth by 1.5 – 2% every
year”- Planning Commission

The Planning Commission in India has projected infrastructure investments to the tune of
Rs. 20,01,776 crore over the Eleventh Five year plan (2007 – 2012)

Projected Infrastrcture Investment in the 11th Plan

Source: Projected infrastructure investment, Planning Commission

And it’s the same story across the world…

Expected Annual Sales in Infrastructure (2005-2010)

Source: World Bank

These gaps in infrastructure present investment opportunities in the space. Rising infrastructure spend can result in sustained sales growth in the infrastructure sector

Investment opportunities in infrastructure are available across multiple sectors like
industrials, cement, construction, metals and mining, telecom, logistics, infrastructure
finance and utilities

Presenting…

KOTAK INDO WORLD INFRASTRUCTURE FUND

The scheme aims to generate long term capital appreciation by investing in equity or equity
related investments or units of overseas mutual funds which are likely to benefit from
growth in infrastructure in India / across the world

NFO Closes

22 December, 2007

Type Of Scheme

3 Year Closed Ended Equity Scheme

Investment Objective

To generate long-term capital appreciation from a portfolio of equity, equity related securities or units of overseas mutual funds, which are likely to directly or indirectly contribute to or benefit from the growth in infrastructure in India / across the world

Asset Allocation

Equity and equity related securities in India related to infrastructure – 65% to 90%

Overseas equity and equity related securities or class of share/units of overseas mutual fund related to infrastructure – 10% to 35%

Debt and money market instruments – 0% to 35%

Suitability

Investors who seek capital appreciation from a portfolio of equity instruments directed at infrastructure sector in India / across the world

Maturity Of The Scheme

Three years after the date of allotment

Benchmark Index

S&P CNX Nifty to the extent of 65% of the portfolio and MSCI World Index to the extent of 35% of the portfolio

Fund Managers Mr. Krishna Sanghvi will be the fund manager for domestic equity investments; Mr. Abhijeet Dey will be the dedicated fund manager for overseas investments and Mr. Ritesh Jain will be the fund manager for debt investments

Investment Options

Growth, Dividend Reinvestment and Dividend Payout

Exit Load

NIL

Unamortized expenses

As per SEBI circular dated 4 April, 2006, balance proportionate unamortized issue
expenses shall be recovered from exiting unit holders. However, where an investor wants to switch his investments from one option to other option under the same scheme, initial issue expenses would not be recovered for such switch

Liquidity

Liquidity will be available during a Liquidity Window, which will allow Redemptions during the last business day of every month from the date of allotment of units, at prices related to applicable NAV. The first such liquidity window shall be on the last business day of the third month from the date of allotment

Initial Issue Expenses

Not exceeding 6%. The Initial issue expense would be amortised over the tenure of the scheme

Taxation

Short Term Capital Gain taxed @ 10%

Long Term capital Gains – Nil

Minimum Investment Size

The minimum amount for investment is Rs. 5000 each and in multiples of Re 1 thereafter for both dividend and growth options. In case of investors opting to switch into the scheme from existing schemes of the fund during NFO, the minimum amount is Rs. 5000 and in multiples of Re 0.01 thereafter

Cheques To Favour

Kotak Indo World Infrastructure

For more details and rick factors, please refer the following

Click Here For More Details

Download Application Form

Download Offer Document

Download Presentation

When investing into a mutual fund, use the following codes

Distributor code: ARN 29889

Sub Broker Code: 222370001

Disclaimer
Mutual Fund Investments are Subject to Market Risks
Please Read the Offer Documents CAREFULLY Before Investing

Explore hidden treasures with Small Companies… DBS Chola MF presents the Small Cap Fund !!!

From the archives
Step back a moment to 1993

Infosys made an initial public offer (IPO) at a price of Rs.95 per share. At that time Infosys was a small cap company with a market cap of Rs.31.8cr. Today its about Rs.1,05,746 crores. On that journey it had created millionaire employees and millionaire shareholders…

Welcome to Small Cap Investing!

Source: Capitalline, DBS Chola MF Internal Research (Data as on 31st October 2007)

What are Small Cap Stocks?
Small Cap stocks, as defined by the Fund’s Objective are those companies whose market capitalisation falls between the highest and the lowest constituent of the BSE Small Cap Index

Why Small Caps make good investment sense?

1. Long Term Out performance
   Small Cap returns over the past few years, and over the longer term, highlight their massive potential (refer graph)

   

   Source : Bloomberg,DBS Chola MF Research

2. Enormous range of opportunity and choice than compared to large cap category
   There is a large and diverse group of companies across sectors to choose from among the small cap universe of stocks, to create a well diversified portfolio. Unlike large cap companies, many of these companies are under-researched and provide ample opportunities of identifying undervalued companies. Our analysis has shown that certain key sunrise sectors exists in the small cap space

   Source : www.bseindia.com, classification as per AMFI, Bloomberg

3. Small Caps are large caps of tomorrow
   Small cap companies have the potential to deliver significant capital appreciation as they evolve into large caps. These companies are relatively young in their growth trajectory, so their high revenues and earnings growth can compound for lengthy period of time

What are the benefits to investors investing in small caps?

• Increased Diversification – Small cap investing is a way to diversify a portfolio concentrated in large cap stocks
• Attractive Potential Returns – Many smaller companies are in an earlier, faster growth phase of business cycle. Their chance for significant expansion can be greater than larger, mature businesses
• Different Types of Businesses, Not Just Smaller – An allocation to small caps can lead to investing in different types of businesses compared to large cap stocks and industries that are in a more dynamic phase of their growth cycle

What is the broad investment strategy?

At DBS Chola MF, we rely on our own independent research to find out the best investment opportunities available in the market. Before making any investments, our team of analyst and fund managers weigh the risks, consider alternatives, and look at hidden pitfalls. It’s integral to our philosophy of intelligently balancing risk and reward for long – term success

To pursue its investment objective, the fund will normally invest at least 65% of its net assets in stocks of small companies. When choosing stocks, we will look for one or more of the following characteristics

• Capable Management
• Attractive Business Niches
• Pricing Flexibility / Valuations
• A potential or demonstrated ability to grow revenues, earnings, and cash flow consistently
• The potential for value unlocking ( such as increased investor attention, asset sales, strong business prospects or a change in management) to cause stock’s price to rise

Stock selection may reflect either a growth or value investment approach. Holdings will be widely diversified by industry and company. Under most circumstances, the fund will invest less than 5% of its total assets in any single company. The portfolio will comprise of approximately 40 – 60 stocks. The fund may on occasion purchase companies with market capitalisation outside the range

Who should invest in this fund?

The fund is ideal for

• Investors seeking for an aggressive, long – term approach to capital growth through a diversified portfolio of small cap stocks
• Investors who want to take advantage of the exciting growth potential of smaller, mostly undiscovered companies
• Investors looking for portfolio diversification
• Investors with a long term horizon

Investment Objective

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of companies with “small market capitalization”

“Small cap Companies for the purpose of the Fund, are companies whose market capitalization is in between the highest and lowest market capitalization of small cap companies on BSE Small Cap Index at the time of investment”

Type

Closed Ended Equity Fund

Tenor

3 years (automatic conversion into open-ended scheme onmaturity)

Unit Price

Rs 10/-

Asset Allocation

Equity & equity related instruments of small-Cap companies: 65% – 100%

Equity & equity related instruments of any other companies: 0 – 35%

Debt Securities and money tomarket instruments: 0 – 35%

Options

Cumulative & Dividend (Payout & Re-investment)

Minimum Application Amount

Rs. 5000/- and in multiples ofRe.1/- there after

Entry load

Nil

Exit load

Nil

Benchmark

BSE Small Cap Index

Fund Manager

R. Rajagopal

Risk Factors

All investments in Mutual Funds and Securities are subject to Market risks and the NAV of the Scheme may go up or down, depending upon the factors and forces affecting the securities market. There cannot be any assurance that the Schemes’ Investment Objectives can be achieved. The past performance of the AMC, Mutual Fund, the Sponsor or its Group affiliation is not indicative of the future performance of the Scheme. The Sponsor is neither responsible nor liable for any loss resulting from the operation of the Scheme beyond the initial contribution of Rs. 1 Lakh made by them towards setting up of the Mutual Fund. DBS Chola Small Cap Fund is only the name and does not in any manner indicate the quality of the Scheme, its future prospects or returns. For scheme specific risk factors and other details investors are requested to refer to the Offer Document of the scheme carefully before making any investment. The scheme does not guarantee any assured returns to the investors

Statutory Details

DBS Chola Mutual Fund has been established as a trust under the Indian Trust Act, 1882 by Cholamandalam DBS Finance Limited (liability restricted to the seed corpus of Rs. 1 lakh) with DBS Cholamandalam Trustees Limited as the Trustee and DBS Cholamandalam Asset Management Limited as the Investment Manager

Downloads

Application Form

Offer Document

One Pager

When filling up a mutual fund application form, you may use the following codes

Distributor Code: ARN 29889

Sub Broker Code: 222370001

Disclaimer
Mutual Fund Investments are Subject to Market Risks
Please Read the Offer Documents CAREFULLY Before Investing

Make Infrastructure your first choice for investing… Presenting the UTI Infrastructure Advantage Fund !!!

India’s infrastructure sector is expected to witness huge investments in the coming years. To enable you to take advantage of this boom, UTI now launches the UTI Infrastructure Advantage Fund. As a 3 year close ended fund it focuses on investing in high growth infrastructure sectors such as Airports, Banking, Construction, Engineering, Energy, Mining, Ports and Power among others

INFRASTRUCTURE-THE FIRST CHOICE
The importance of infrastructure for India’s sustained economic development is well recognized today. Investment in this sector has gained momentum in the last few years and is experiencing rapid growth across the different sub-sectors. Enormous growth opportunities are going to emerge in the near future as well

The Government of India has already started major initiatives including plans to open up the infrastructure development to private sector companies in order to further boost up the growth and development. Let’s take a quick look at some of the initiatives in the infrastructure sectors

Highways
An ambitious National Highway Development Programme (NHDP), involving a total investment of Rs.2,20,000 crores upto 2012 is underway

Railways

• To build dedicated freight corridors in the Western and Eastern high-density routes
• Technological upgradation and modernisation for higher operating ef?ciency
• PPP (Public Private Partnership) envisaged in new routes, railway stations, logistics parks, cargo aggregation, warehouses etc

Ports

• Empower and enable the 12 major ports to attain world-class standards
• Plan for improving rail-road connectivity of major ports, which is to be implemented within a period of three years

Airports

• Greenfield international airports at Bangalore and Hyderabad have been approved and are currently under construction
• A comprehensive plan for the development of other 35 non-metro airports is also under preparation

Telecom
250 million subscribers by December 2007. Over 4 million new users being added every month

Power

• Power for all by 2012. Additional 60,000 km of transmission network to be put up by 2012
• Total investment opportunity of about US$ 200 billion over a seven year horizon

Private Sector participation in infrastructure
The share of public and private investment in the total infrastructure investment during the 11th plan is projected to be about 70 % and 30% respectively, in contrast with 83% and 17% respectively during the 10th Plan. Telecom, Ports and Airports are some of the sectors where private investment is expected to constitute more than 65% of the total investment.All these initiatives are going to put infrastructure reform process in the fast lane and drive the Indian economy on an accelerated growth path. Thus companies in the infrastructure sector / sub sectors are going to see greater opportunities/value in the times to come

UTI Infrastructure Fund: An Impeccable Track Record
UTI Mutual Fund has an impeccable track record in the management of an Infrastructure Fund called UTI Infrastructure Fund. We were one of the ?rst to spot the opportunity in 2004 when the sector really took off. The fund has a consistent performance track record and it is one of the best schemes in the equity diversi?ed category with a one-year return of 79.95 % as on 1st Nov. 2007 (as per Value Research). Currently the scheme has been rated as a 5-Star Fund by Value Research. (Source: www.valueresearchonline.com)

Nature of the scheme
A 3 year close-ended equity scheme.

Investment Objective
The investment objective of the scheme is to provide income distribution and/ or medium to long term “capital appreciation” by investing predominantly in equity / equity related instruments in the companies engaged either directly or indirectly in the infrastructure growth of the Indian economy. However, there is no assurance that the investment objective of the scheme will be achieved

Investment Focus and Asset Allocation Strategy
The broad investment strategy of the fund will be to invest in equity and equity related securities of companies that are engaged either directly or indirectly in the infrastructure growth of the Indian economy, including those in the derivatives segment

Asset Allocation
Normally 65% – 100% of the portfolio will be invested in equities of companies engaged either directly or indirectly in the infrastructure sector

When can one redeem the units?
The scheme will offer redemption /switch out of units within six months from the closure of the New Fund Offer and thereafter on an ongoing basis at NAV based prices on every Business Day

Who can invest?

• A resident individual & persons–on behalf of minors
• NRIs
• A HUF both resident & non resident
• An association of persons
• A partnership firm
• An eligible Trust
• A society defined under the scheme
• A financial institution
• A bank including a scheduled bank, a regional rural bank or a cooperative bank
• A body corporate including a company under the Companies Act 1956
• An Army/Navy/Air Force/Paramilitary Fund
• Mutual Funds registered with SEBI
• Scientific and Industrial Research Organisation and
• FIIs registered with SEBI

Options Available
Growth Option
Dvidend Option with Payout facility

Offer Price
The units can be purchased at the face value of Rs 10/- per unit during the New Fund Offer period only

Minimum Investment Amount
Minimum initial investment is Rs. 5,000/- and in multiples of Re.1/- thereafter without any upper limit

Entry Load
The scheme being a close- ended scheme, is not permitted to charge an entry load.

Exit Load
NIL. However, an early exit charge equivalent to the unamortized New Fund Offer expenses will be recovered from the investor in case of redemption before expiry of 3 years from the date of allotment. The trustee reserves the right to change the load structure any time on a prospective basis

Net Asset Value
NAV will be declared on a daily basis within 30 days of the date of closure of the New Fund Offer period

Benchmark Index
BSE 100 is the benchmark for UTI Infrastructure Advantage Fund – Series I

Fund Manager
Shri Sanjay Dongre

Registrar
M/s Karvy Computershare Private Limited.

Source
All the details/data under heading Highways, Railways, Ports, Airports, Telecom, Power and Private Sector Investment are from http://www.infrastructure.gov.in/

Downloads

Application form
Offer Document
KIM
UTI Infrastructure Fund Presentation

When you fill any mutual fund application form, please use the following codes

Distributor Code: ARN 29889

Sub-Broker Code: 222370001

About UTI Mutual Fund

Vision

To be the most preferred Mutual Fund

Mission

To offer customer-oriented, innovative products by leveraging technology to provide superior returns, achieve the highest service standards and attain sustained growth levels through principled human resources striving in a focused, transparent ethical manner to exceed investor expectations

Professional Management of Funds

It has a well-qualified, professional fund management team, who have been highly empowered to manage funds with efficiency and accountability in the interests of unit holders. The fund managers are also ably supported with a strong in-house equity research department. To ensure better management of funds, a risk management department is also in operation

Customer Service

All the branches and registrar offices are connected on a robust IT network to ensure quick and efficient service. All these have helped UTI Mutual Fund evolve as a dynamic, responsive, caring, transparent and a SEBI compliant entity. UTI Mutual Fund has more than 7.5 million investors who have invested in its different schemes

Wide range of schemes/funds

UTI Mutual Fund has a product to meet every need of an individual/ institution, appropriate to his risk return profile and financial goals

Network
A nationwide network consisting of 79 UTI Financial Centres (UFCs) and UTI International offices in London, Dubai and Bahrain. With a view to reach out to common investors at the district level, representative satellite offices have also been opened in most towns and districts

Management

UTI Mutual Fund is managed by UTI Asset Management Company Private Limited who has been appointed by the UTI Trustee Company Private Limited for managing the schemes of UTI Mutual Fund and the schemes transferred / migrated from erstwhile Unit Trust of India. UTI Mutual Fund has come into existence with effect from 1st February 2003. UTI Asset Management Company with Assets Under Management of over Rs. 41000 Crores as on August 31, 2007. (Source–www.amfiindia.com)

Registered Office

UTI Tower, Gn Block, Bandra – Kurla Complex, Bandra (East), Mumbai – 400 051.UTI AMC Pvt. Ltd. will provide professionally managed back office support for all business services of UTI Mutual Fund in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTI AMC

Disclaimer
Mutual Fund Investments are Subject to Market Risks
Please Read the Offer Documents CAREFULLY Before Investing