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Friday 16 October 2009

[56] Important N.F.O. Religare PSU Equity Fund


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New Fund Offers
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Religare PSU Equity Fund(An Open Ended Equity Scheme)
PSU Companies: PSU companies means Public Sector Undertaking companies, where the Central/State Government have majority shareholding or where the management control lies with the Government.
Some PSU Companies are: SBI, BHEL, ONGC, NTPC, SAIL, IOC, NMDC, BEML, Gail, .......
Why PSU?
  • Most of the PSU Companies in India are with very strong fundamentals & in many sectors they have a virtual monopoly.
  • Top 18 PSU companies (called Navaratnas') total income is equal to 15% of India's GDP.
  • 6 out of top 10 companies in India are PSUs and in NIFTY out of 50 companies 10 companies are PSU.
  • PSU Companies represent 30% of market cap of listed companies in India.
  • In 2008, Public sector Undertaking Companies paid over 33.5% of their net profits as dividends.
  • Many of the PSU companies belong to sector which are core to the India Growth story.,
PSUs: The opportunity is now. Investors can consider this NFO for the following reasons:
  • PSUs - Strong Fundamentals
  • Low Debt-Equity Ratio: Makes them less vulnerable in case of a downturn.
  • PSU stocks are available at attractive valuations.
  • PSU Companies are wealth creators.
  • There is a proposal by the regulator to make it mandatory for all listed companies to have minimum public shareholding of at least 25%. This makes many PSU companies automatic candidates for Disinvestments and this fund can take the advantage of investing in these IPOs.
With all these positives, this product is most suitable one for medium to long-term investors.
Now you are in Religare PSU Equity Fund NEW FUND OFFERS
Investment Objective
To generate capital appreciation by investing in equity and equity related instruments of companies where the Central / State Government has majority shareholding or management control or powers to appoint majority of directors.
Scheme Type An Open Ended Equity Scheme
Issue Opened on September 29, 2009
Issue Closes on October 28, 2009
Investment Options Growth, Dividend
Benchmark Index BSE PSU Index
Asset Allocation Particulars Allocation Risk Profile
Equity & Equity Related Instruments of the constituents of BSE PSU Index
65% - 100%High
Equity & Equity Related Instruments of PSU companies other than the constituents of BSE PSU Index
0% - 35% High
Equity & Equity Related Instruments of non PSU companies
0% - 20%High
Debt & Money Market Instruments
0% - 35%Low to Medium
Minimum Investment Rs.5000 and in multiples of Re.1 thereafter.
Entry Load Nil
Exit Load
1%, if units are redeemed / switched-out on or before 1 year and no exit load, if redeemed after 1 year from the date of allotment
Fund Manager Mr.Pradeep Kumar
SIP SIP Available

Note: Kindly refer to the prospectus and risk factors before investing. Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAV of the Scheme(s) may go up or down depending on the factors and forces affecting the securities markets. There can be no assurance that the objectives of the Scheme(s) will be achieved. Past performance of the Sponsor,AMC Mutual Fund or any associates of the sponsor/AMC does not indicate the future performance of the Scheme(s) of the Mutual Fund

Religare PSU Equity Fund
Franklin Templeton Fixed Tenure Fund - Series XII - Plan B

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