NFOs Now Open ; Close: May 11, 2010
Religare MF today announced the launch of two new funds: Religare Monthly Income Plan (MIP) Plus – India’s First Monthly Income Plan with an asset allocation to Gold and Religare Monthly Income Plan – the traditional monthly income plan.
Religare Monthly Income Plan (MIP) Plus
Religare MIP Plus is a departure from the traditional breed of monthly income plans, which combine fixed income and equities. This innovative fund introduces one additional asset class i.e. Gold (through Gold ETF’s), with the aim of improving diversification and enhancing performance. Gold has a low or negative correlation with most other asset classes, which means that its price changes are independent of price changes in other asset classes like equities and debt. Adding gold provides the fund manager with the flexibility to tilt the allocation made between asset classes so that the fund is positioned to take full advantage of prevailing market conditions. The fund seeks to generate regular income through a portfolio of fixed income securities, Gold ETFs, equity and equity related instruments. The fund will invest a minimum of 65% of its assets in debt and money market instruments (exposure range 65% - 90%); in addition a minimum 10% of assets will be invested in Gold ETFs (exposure range 10% - 35%). The fund, to generate moderate capital growth will invest upto 25% in equity and equity related assets (exposure range 0 – 25%). The fund manager will adopt the bottom up investment approach to select stocks. The fund is benchmarked against CRISIL MIP Blended Index and Price of Gold.
Speaking on the occasion Saurabh Nanavati, Chief Executive Officer, Religare MF said “Traditionally, Indian Investors have always found comfort with fixed income and gold. Including Gold in a traditional MIP provides the retail investor with added convenience of being able to invest in 1 scheme as compared to investing and tracking of 3 different asset classes. It also brings in distinctly different risk/return characteristics. Gold’s low or inverse correlation with other major asset classes like equity and debt helps to improve, stablise the risk/ return profile during declining financial markets and poor economic climates.”
Religare Monthly Income Plan
Religare Monthly Income Plan is the traditional MIP product offering that seeks to generate regular income through a portfolio of predominantly high quality fixed income securities and with a small exposure to equity and equity related instruments. The fund will invest 75%-100% in debt and money market instruments and 0-25% in equity and equity related instruments. The fund is benchmarked against CRISIL MIP Blended Index.
For both Religare MIP Plus & Religare Monthly Income Plan, the minimum application amount during NFO under the Growth option is Rs. 5,000/- and in multiples of Re. 1/- thereafter. Under the Dividend option, the minimum application amount is Rs. 25,000/- and in multiples of Re. 1/- thereafter.
About Religare Asset Management
With average assets under management of over INR 129 bn (for March 2010), expertise that extends across equity and fixed income investments, Religare Asset Management offers you a broad range of funds designed to suit your investment needs with an aim to provide best-in-class investment products across asset classes, regions and risk spectrum with high standards of customer service.
Religare Asset Management is promoted by Religare Securities Ltd. - a wholly owned subsidiary of Religare Enterprises Ltd.
For more information, log on to www.religaremf.com
About Religare Enterprises Limited
Religare is a global financial services group with a presence across Asia, Africa, Middle East, Europe and the Americas. In India, Religare’s largest market, the group offers a wide array of products and services ranging from insurance, asset management, broking and lending solutions to investment banking and wealth management. The group has also pioneered the concept of investments in alternative asset classes such as arts and films. With 10,000 plus employees across multiple geographies, Religare serves over a million clients, including corporates and institutions, high net worth families and individuals, and retail investors.
For more information, please visit - www.religare.in
Risk Factors: All mutual funds and securities investments are subject to market risks and there can be no assurance that the objective of the Scheme will be achieved. Investment in mutual fund units involve investment risks such as trading volumes, settlement risk, liquidity risk, default risk including the possible loss of capital. As with any investment in securities, the NAV of the units issued under Scheme may go up or down depending upon the factors and forces affecting the securities markets. Past performance of the Sponsor and its affiliates / AMC / Mutual Fund and its Scheme(s) do not indicate the future performance of the Scheme of the Mutual Fund. Investors in the Scheme are not being offered any guaranteed / assured returns. Religare Monthly Income Plan (MIP) Plus (An Open Ended Income Scheme. Monthly income is not assured and is subject to availability of distributable surplus. The term ‘Plus’ has been used in terms of the asset allocation and not in terms of returns/yield.) and Religare Monthly Income Plan (An Open Ended Income Scheme. Monthly income is not assured and is subject to availability of distributable surplus.) are only the names of the Schemes and do not in any manner indicate either the quality of the Schemes, their future prospects and returns. Asset Allocation Pattern: Religare Monthly Income Plan (MIP) Plus: Debt* and Money Market Instruments: 65%-90%. Equity and Equity Related Instruments and/ or Units of equity mutual fund schemes: 0%-25%. Gold Exchange Traded Funds: 10%-35%. *Investment in securitized debt including pass through certificate (PTC) <= 50% of the net assets. The Scheme will not invest in foreign securitized debt. Exposure to foreign securities <= 50% of the net assets. Maximum gross derivative position <= 50% of the net assets. However, the aggregate asset allocation including exposure to derivatives will not exceed 100% of net assets of the Scheme. Religare Monthly Income Plan: Debt* and Money Market Instruments: 75%-100%. Equity and Equity Related Instruments and/ or Units of equity mutual fund schemes: 0%-25%. *Investment in securitized debt including pass through certificate (PTC) <= 50% of the net assets. The Scheme will not invest in foreign securitized debt. Exposure to foreign securities <= 50% of the net assets. Maximum gross derivative position <= 50% of the net assets. However, the aggregate asset allocation including exposure to derivatives will not exceed 100% of net assets of the Scheme. Please read the Scheme Information Document(s) and Statement of Additional Information carefully before investing. SID, SAI and Key Information Memorandum cum Application Form are available at the ISC/Distributors. Load Structure: Entry Load: Nil. Exit Load: In respect of each purchase/switch-in of units, an exit load of 1% is payable if units are redeemed/ switched-out on or before 1 year from the date of allotment. In respect of each purchase/switch-in of units, no exit load is payable if units are redeemed/ switched-out after 1 year from the date of allotment. Terms of Issue: Issue of units at Rs.10/- per unit during the New Fund Offer and at the NAV based prices on all the Business Days on ongoing basis. The Schemes offer repurchase/redemption facility at NAV based prices on all the business days commencing not later than 30 days from close of new fund offer period. The NAV of the Schemes will be disclosed on all Business Days. Statutory Details: Religare Mutual Fund has been set up as a trust sponsored by Religare Securities Ltd. (liability restricted to Rs. 1,50,000) with Religare Trustee Company Ltd. as the Trustee (Trustee under the Indian Trusts Act, 1882) and with Religare Asset Management Company Ltd. as the Investment Manager.
