The primary objective of the Scheme is to generate long term capital appreciation from a portfolio that is invested predominantly in equity and equity related instruments.
Basic Scheme Information
|Nature of Scheme
||Open Ended Equity Linked Savings Scheme with a lock-in period of 3 years
||January 02, 2001
||Existing Plan : Dividend Option,Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.
Direct Plan (w.e.f. 01 Jan 2013) : Dividend Option, Growth Option. The Dividend Option offers Dividend Payout and Reinvestment Facility.
(For Lumpsum Purchases and investments through SIP/STP)
Unfront commission shall be paid directly by the investor to the ARN Holder (AMFI registered Distributor) based on the investors’ assessment of various factors including the service rendered by the ARN Holder.
(as a % of the Applicable NAV)
No Exit Load shall be levied on bonus units and units allotted on dividend reinvestment.
|Minimum Application Amount
(click here for SIP Details)
|For new & existing investors :Rs.500 and in multiples of Rs. 500 thereafter.
||3 years from the date of allotment of the respective Units
|Net Asset Value Periodicity
||Every Business Day.
||Normally dispatched within 3-4 Business days
(As per present Laws)
|Please click for details
|Current Expense Ratio (#)
(Effective Date 01st October 2012)
|On the first 100 crores daily net assets 2.50%
On the next 300 crores daily net assets 2.25%
On the next 300 crores daily net assets 2.00%
On the balance of the net assets 1.75%
In addition to the above a charge of 20 bps on the daily net assets plus a proportionate charge in respect sales beyond T-15 cities subject to maximum of 30 bps on daily net assets.
|Excluding Service Tax on Investment Management Fees, if any.
Direct Plan shall have a lower expense ratio by 0.55%.
(#) Any change in the expense ratio will be updated within two working days.
||27 Jan 2013
||27 Jan 2013
|Direct Plan – Dividend Option
||27 Jan 2013
|Direct Plan – Growth Option
||27 Jan 2013
The net assets of the Scheme will be invested primarily in equity and equity related instruments. The Scheme may invest a part of its net assets in debt and money market instruments, in order to manage its liquidity requirements from time to time, and under certain circumstances, to protect the interests of the Unit holders.
The asset allocation under the Scheme will be as follows :
||Type of Instruments
(% of Net Assets)
||Equities & Equity related instruments
||Debt Securities, Money Market instruments(including cash/CBLO Reverse Repos)
||Low to Medium
The funds collected under the Scheme shall be invested in equities, cumulative convertible preference shares and fully convertible debentures and bonds of companies. Investment may be made in partly convertible debentures and bonds including those issued on a rights basis subject to the condition that, as far as possible, the non convertible portion of the debenture so acquired or subscribed shall be disinvested within a period of 12 months.
It shall be ensured that funds of the Scheme shall remain invested to the extent of atleast 80% in securities specified above. In exceptional circumstances, this requirement may be dispensed with by the AMC, in order that the interest of the Unit holders are protected.
Pending investment of funds of the Scheme in the required manner, the AMC may invest the funds of the Scheme in short term money market instruments or other liquid instruments or both. After 3 years from the date of allotment of the Units, the Mutual Fund may hold upto 20% of net assets of the Scheme in short-term money market instruments.
The investment approach will be based on a set of well established but flexible principles that emphasise the concept of sustainable economic earnings and cash return on investment as the means of valuation of companies.
Five basic principles serve as the foundation for
this investment approach. They are as follows :
Focus on the long term
There is substantive empirical evidence to suggest that equities provide the maximum risk adjusted returns over the long term. In an attempt to take full advantage of this phenomenon, investments would be made with a long term perspective.
Investments confer proportionate ownership
The approach to valuing a company is similar to making an investment in a business. Therefore, there is a need to have a comprehensive understanding of how the business operates. The key issues to focus on are growth opportunities, sustainable competitive advantage, industry structure and margins and quality of the management.
Maintain a margin of safety
The benchmark for determining relative attractiveness of stocks would be the intrinsic value of the business. The Investment Manager would endeavor to purchase stocks that represent a discount to this value, in an effort topreserve capital and generate superior growth.
Maintain a balanced outlook on the market
The investment portfolio would be regularly monitored to understand the impact of changes in business and economic trend as well as investor sentiment. While short-term market volatility would affect valuations of the portfolio, this is not expected to influence the decision to own fundamentally strong companies.
Disciplined approach to selling
The decision to sell a holding would be based on either the anticipated price appreciation being achieved or being no longer possible due to a change in fundamental factors affecting the company or the market in which it competes, or due to the availability of an alternative that, in the view of the AMC, offers superior returns.
In order to implement the investment approach effectively, it would be important to periodically meet the management face to face. This would provide an understanding of their broad vision and commitment to the long-term business objectives. These meetings would also be useful in assessing key determinants of management quality such as orientation to minority shareholders, ability to cope with adversity and approach to allocating surplus cash flows. Discussion with management would also enable benchmarking actual performance against stated commitments.
In summary, the Investment Strategy is expected to be a function of extensive research and based on data and reasoning, rather than current fashion and emotion. The objective will be to identify “businesses with superior growth prospects and good management, at a reasonable price”.
The Scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments. Investment in Debt securities (including securitised debt) and Money Market Instruments will be as per the limits in the asset allocation table of the Scheme, subject to permissible limits laid under SEBI (MF) Regulatiosns. Please refer to ‘Debt securities’ and ‘Money Market Instruments’ under the section ‘WHERE WILL THE SCHEME(S) INVEST’ in the SID.