Sundaram Multiplier: Small steps, big rewards

NFO REVIEW

For those who love taking high risks and have money to park for up to five years, Sundaram BNP Paribas offers two close ended funds, Select Small Cap and Equity Multiplier.

While the Small Cap fund will invest in companies with a market cap of between Rs 500 crore to Rs 1,000 crore, the Equity Multiplier will look at a broader but compact 40-stock portfolio with an aim to maximise returns.

Fund manager Anoop Bhaskar said if the 7 per cent GDP number holds and small-caps are able to successfully expand their base, sales could double in the next five years.

The fund house believes that the small- and mid-caps, which are 15 per cent lower than their May 2006 peaks, have scope to grow.

The funds are close-ended with high exit loads to tackle volatility and discourage redemptions. The Select Small Cap closes on January 24, while the Equity Multiplier closes on January 31.

Kotak Wealth Builder: Twin exposure

After the launch of a slew of capital protected funds, Kotak has introduced its own version called the Kotak Wealth Builder Series-I, which seeks to invest in a blend of debt and equity derivative instruments.

The fund aims at protecting the investors' capital while at the same time adding a kicker in the form of options exposure.

The fund will be able to protect your capital if it invests about 80 per cent of its portfolio with a return of 8.4 per cent for the AAA-rated debt. With a market neutral options strategy, the fund hopes to give returns irrespective of the market direction.

The scheme matures in three years and investors can exit four times a year. This issue closes on January 25.