Prajna Capital

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• Sectoral Funds from Birla Sun Life AMC
• Mutual Fund Review: AIG Infrastructure and Economic Reform
• Mutual Fund Review: Prudential ICICI Growth Plan
• ICICI Prudential Mutual Fund - Its Schemes
• Tata SIP Fund Scheme-1
• Mutual Fund Review: HDFC Core and Satellite Fund

Sectoral Funds from Birla Sun Life AMC Posted: 30 Aug 2011 12:47 AM PDT Birla Sun Life Buy India Fund Objective Birla Sun Life Buy India Fund is a multi sector open-end growth scheme with the objective of long-term growth of capital through a portfolio with a target allocation of 100% equity, focusing on investing in businesses that are driven by India's large population and inherent consumption patterns. The secondary objective is income generation and distribution of dividend. Minimum subscription amount Rs.5,000/- and in multiples of Re. 1/- thereafter Entry Load For Purchase / switch in of units less than Rs. 5 Crores in value: 2.25% For Purchase / switch in of units equal to or greater than Rs. 5 Crores in value: NIL Exit Load For Purchase / Switch in of Units, less than Rs. 5 crores in value, an exit load of 1.00% is payable if units are redeemed / switched out within 12 months from the date of allotment. For Purchase / Switch in of Units, equal to or greater than Rs. 5 crores in value, no exit load is payable. Birla Sun Life New Millennium Fund Objective Birla Sun Life New Millenium Fund is a multi-sector open-end growth scheme with the objective of long-term growth of capital through a portfolio with a target allocation of 100% equity, focusing on investing in technology and technology dependent companies, hardware, peripherals and components, software, telecom, media, internet and e-commerce and other technology enabled companies. The secondary objective is income generation and distribution of dividend. Minimum subscription amount Rs.5,000/- and in multiples of Re. 1/- thereafter Entry Load For Purchase / switch in of units less than Rs. 5 Crores in value: 2.25% For Purchase / switch in of units equal to or greater than Rs. 5 Crores in value: NIL Exit Load For Purchase / Switch in of Units, less than Rs. 5 crores in value, an exit load of 1.00% is payable if units are redeemed / switched out within 12 months from the date of allotment. For Purchase / Switch in of Units, equal to or greater than Rs. 5 crores in value, no exit load is payable.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Mutual Fund Review: AIG Infrastructure and Economic Reform Posted: 30 Aug 2011 12:18 AM PDT   Though not around for too long, AIG Infrastructure and Economic Reform has shown potential. Husain has successfully implemented the fund's mandate to make it one of the better picks in its category.   Its investment objective permits it to invest in companies that could benefit from potential investments in infrastructure and unfolding economic reforms. Any investor familiar with the infrastructure space will be aware that each fund manager has his own view on what constitutes 'infrastructure'.   Moreover, other government bodies such as the Income Tax department and the Reserve Bank of India (RBI) also have their own definition. At AIG Mutual Fund, they stick to the definition put forth by the Planning Commission.   In this fund, the obvious sectors will be eliminated such as Technology, Pharmaceuticals, Automobiles and Media. Interestingly, even pure Oil & Gas, which translates into refining and exploring, is eliminated - which explains the absence of ONGC and Reliance Industries Ltd. in this portfolio. On the flip side, companies that fall in the transportation segment (pipelines) of the Oil & Gas sector qualify to fit in its investment universe. Real Estate and Construction also fall outside the purview of this fund unless the company gets substantial revenues from building Special Economic Zones (SEZ), airports, ports or other such infrastructure.   One conspicuous aspect is the prevalence of banking stocks in this portfolio which are quite different from the ones found in other similar portfolios. So it's ironical to hear Husain say that he does not believe Banking is part of Infrastructure. He justifies his Banking exposure under economic reforms. "Banks have to keep lending to grow. Hence, they have to keep raising capital. For every Rs 100 given as a loan, they need Rs 9 as capital. A public sector bank cannot freely raise funds since the government holding has to be a minimum 51 per cent. If they freely raise funds, the government shareholding will drop. So the government has to put in capital for them to grow. This in turn impacts the government's balance sheet. Some banks got the capital last year, some will get it this year. Till the banks get the capital, their growth is stunted." This explains why private banks do not find a place here. Pricing of Energy (diesel, cooking fuel, coal etc) is another area that falls under economic reforms. The fund's second largest holding - Coromandel International is also one that is not popular with its peers. This fertilizer company deals with diammonium phosphate (DAP) and benefitted from the government's decision last year to de-regulate non-urea fertilizer prices. Another beneficiary of the economic reforms process. Whether by stocks or sectors, this fund is not afraid to go its own way. When the bet on Engineering crossed 30 per cent last year, the category average was less than 15 per cent. Currently, exposure to Financials is way below the category average while that to Services is higher. However, if Husain bet on banking stocks, this fund would have delivered even better returns. He has not been very bullish on public sector banks, two of the reasons being that growth is being stunted by the amount of capital that the government puts in and also because he does not believe they are adequately covered for non-performing assets (NPAs). The fund has been hit with this move. When Husain took over in 2009, he brought about a substantial change in the portfolio. As a result, there are just two stocks currently that have been around since 2008 - Bharat Electronics Ltd. and Indraprastha Gas Ltd. By and large, the fund manager is fairly active in his movements in and out of stocks. He puts it down to the dynamism in this space - change in regulations, emergence of new sectors and other such factors. The same vigorous style gets reflected in his asset allocation. The fund is sometimes seen taking substantial cash bets, currently at 20 per cent. While some portfolio managers argue that they do not compromise on being fully invested, that could backfire if it is a sector or thematic fund in question. Once investment is limited to a sector, or a few sectors, when there are periods valuations get stretched to the extremes it could be safer just moving into cash. "We adhere to our strategy of buying cheap when valuations are below fair value and selling when they are above fair value. At times, this strategy may not find sufficient stocks. But we will not purposely deploy the money in a stock which is not attractive at that point in time."   So even if the wait is sometimes long (the cash allocation from November to January was above 20%), Husain sticks to his guns. Husain is a bottom-up stock picker who goes by three broad parameters when buying a stock - dominance of the company in its industry, the management quality and ability, and the valuation of the stock. In this fund, he does inch towards a mid-cap tilt because to a large extent the space itself is characterized by smaller companies. Once he narrows down on his picks, he bets on his convictions. Ever since he took over he never exceeded 25 stocks in his portfolio with his top individual bets sometimes crossing 8 per cent. This does give the portfolio a slightly risky tilt but Husain has this far shown that he knows what he is doing   Our View Why we picked this fund? This year AIG Infrastructure and Economic Reform completed three years (the minimum period an equity fund has to be in existence before it gets rated by Value Research). On getting rated, it bagged a 4-star.   What's good? Within the 'Equity: Infrastructure' category, this fund has made a mark. The annual returns of the fund have always put it in the second quartile slot. However, the current trailing returns show that the fund has a substantial lead over its peers.   What's not? The mid-cap bent, a fairly concentrated portfolio and a focused theme make it a pretty risky offering.   What you should be wary about? Such thematic funds should not hog a major chunk of your portfolio. In terms of Infrastructure, there have been numerous headwinds in terms of delays, non-availability of raw material, increased cost of raw material, land acquisition approvals as well as scams (as in the case of Telecom). Investors, once in, need to exercise patience and not fret when the going gets tough - as it invariable will in such focused investments.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Mutual Fund Review: Prudential ICICI Growth Plan Posted: 29 Aug 2011 11:46 PM PDT Type: Equity Diversified Fund Manager: S Naren, Deven Sangoi Inception Date: 19-Jun-1998   Prudential ICICI Growth Plan – cumulative was launched in Jun 1998 and has been in operation for more than eight years now, and is predominantly a large cap oriented stock. The scheme has grown at a CAGR of 29.43%, whereas the scheme's benchmark index S&P Nifty has appreciated by 17.04 % in the same period. The scheme due to its large cap focus has managed to maintain its rankings in the top quartile inspite of the recent market meltdown. The investment objective of the scheme as per its offer document is to seek to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities.   Prudential ICICI Mutual fund has Rs 34118.87 crores of assets under management, which is a growth of around 59% over the last years. Only UTI Mutual Fund has a greater asset base at Rs 35027.49 crores. Prudential ICICI Growth Plan has invested in 34 scrips, top 5 holdings account for 21.56% of the portfolio and top 10 scrips constitute 36.85% of the portfolio. Reliance Industries receives the highest weightage in this month's portfolio with around 5.4% of the total net assets being invested in the scrip.     The total equity allocation is 86.35% and 12.67% of the net assets are invested in cash and equivalent. The scheme seem to have unwind some positions in the equity markets in view of the increased volatility lately as the equity allocation has come down from 95.22% in Apr 06 to current levels. Diversified, Banks and Auto & IT are some of the sector which the fund manager is bullish on as reflected by higher asset allocation in these sectors in the last one year, and even in the recent portfolio these sectors dominate with Diversified sector alone constituting 18.17% of the net assets, with Banks and IT sectors receiving 9.66% and 8.37% allocation respectively. Infosys Technologies, ONGC, Grasim Industries and TCS are some of the other top holdings of the portfolio. And between them they account for one-fifth of the portfolio. The scheme has done quite a bit of shopping this month and as many as seven new stocks have entered the portfolio, namely, Bank of Baroda, JP Associates, Zee Telefilms, BHEL, Aventis Pharma, Tata Steel and Tech Mahindra, whereas, the scheme exited from some of the stocks like EID Parry, Gujarat Ambuja Cements, Indian Hotels, MTNL, NTPC and Triveni Engg. & Ind. Ltd.   Midcap stocks form only a miniscule part of the portfolio and traditionally Midcap and small cap exposure has not gone beyond 7-10% in the last one year, which has resulted in lending stability to the portfolio.   The scheme has managed to outperform its peer group average in the last one year period due to its focus on large cap stocks, as Midcap stocks have taken a severe beating in the recent crash, and most scheme with sizeable Midcap exposure are yet to recover from the aftermath. The scheme's CAGR returns of around 29% since the last eight years is noteworthy as it has seen both the phases of the market and has delivered in all circumstances. Investors looking for a scheme which can lend long term stability to their portfolio may well find their answer in Prudential ICICI Growth Plan   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

ICICI Prudential Mutual Fund - Its Schemes Posted: 29 Aug 2011 10:44 PM PDT     ICICI Prudential Asset Management Company is a Joint Venture between ICICI Bank and Prudential Plc. ICICI bank is one of the largest banks in India and Prudential Plc is one of the largest players in financial services in United Kingdom.   ICICI Prudential Mutual fund has launched a number of Equity Schemes, Balanced Schemes, and Fixed Income Funds.   Some of the best performing Equity Mutual Fund Schemes in ICICI Prudential Mutual Fund are:   ·                           ICICI Prudential Banking and Financial Services Fund – Retail – Dividend ·                           ICICI Prudential Banking and Financial Services Fund – Retail – Growth ·                           ICICI Prudential FMCG Fund – Growth ·                           ICICI Prudential FMCG Fund – Dividend ·                           ICICI Prudential Focused Bluechip Equity Fund – Retail – Growth ·                           ICICI Prudential Focused Bluechip Equity Fund – Retail – Dividend ·                           ICICI Prudential Fusion Fund – Dividend ·                           ICICI Prudential Fusion Fund - Growth ·                           ICICI Prudential Discovery Fund – Dividend ·                           ICICI Prudential Discovery Fund - Growth ·                           ICICI Prudential RIGHT Fund – Dividend ·                           ICICI Prudential RIGHT Fund - Growth   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Tata SIP Fund Scheme-1 Posted: 29 Aug 2011 10:02 PM PDT Objective To achieve a long term growth. The scheme seeks to achieve its investment objective by investing systematically in Equity / Equity related instruments. Option Available Growth & Dividend Minimum Application Amount Rs.5,000/- & in multiples of Re.1/- thereafter. Debt Schemes Tata Short Term Bond Fund Objective To provide reasonable returns and high level of liquidity by investing in short- term debt instruments. Option Available Dividend Option and Growth Option Minimum Application Amount Rs.10,000/- and in multiples of Re.1/- thereafter. -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

Mutual Fund Review: HDFC Core and Satellite Fund Posted: 29 Aug 2011 07:44 PM PDT Objective The primary objective of the Scheme is to generate capital appreciation through equity investment in companies whose shares are quoting at prices below their true value. Option/Plan Growth Plan,Dividend Plan. The Dividend Plan offers Dividend Payout and Reinvestment Facility. Entry Load (as a % of the Applicable NAV) In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an Entry Load of 2.25% is payable. In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 crore in value, no Entry Load is payable. Exit Load (as a % of the Applicable NAV) In respect of each purchase / switch-in of Units less than Rs. 5 Crore in value, an Exit Load of 1% is payable if units are redeemed / switched-out within 1 year from the date of allotment. In respect of each purchase / switch-in of Units equal to or greater than Rs. 5 Crore in value, no Exit Load is payable. Minimum Application Amount For new investors :Rs.5000 and any amount thereafter. For existing investors : Rs. 1000 and any amount thereafter. -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Invest in DSP BlackRock Mutual Funds Online   Invest in Reliance Mutual Funds Online   Invest in HDFC Mutual Funds Online   Invest in Sundaram Mutual Funds Online   Invest in Birla Sunlife Mutual Funds Online   Invest in UTI Mutual Funds Online    Invest in SBI Mutual Funds Online   Invest in Edelweiss Mutual Funds Online   Invest in IDFC Mutual Funds Online

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