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Friday, January 16, 2009

Bharti AXA MF Launches Regular Return Fund

NFO period from 28 January–24 February 2009

Bharti AXA Mutual Fund has announced initial offer period of Bharti AXA Regular Return Fund, an open ended income scheme. The fund opens for new issue on 28 January 2009 and remains open till 24 February 2009. The NFO price for the fund is Rs 10 per unit. The scheme will re-open on 16 March 2009.

The Scheme seeks to generate regular income through investments in fixed income securities and also to generate long term capital appreciation by investing a portion in equity and equity related instruments.

The scheme will offer two plans viz. eco and regular plan with growth & dividend options. Dividend option will further offer dividend payout and reinvestment facility. Dividend reinvestment option will have with monthly, quarterly and annual frequency of dividend re-investment. Dividend pay-out option for regular income will be having monthly, quarterly and annual frequency.

Eco plan is available for purchase transactions of up to Rs 2 lakh only. Where the value of any purchase transaction is greater than Rs 2 lakh, then such investments can be placed only in regular plan. Both plans will have common portfolio.

The minimum investment amount for both eco and regular plan is Rs 10,000 and in multiples of Re 1 thereafter. Additional investments in an existing folio can be made for Rs 1000.

The Mutual Fund seeks to raise a minimum subscription amount of Rs. 1 crore during its New Fund Offer period.

The fund will not charge any entry load. It will charge 1% of exit load if redeemed before 12 months from date of allotment. A switch out will also attract an exit load like any redemption and no exit load will be charged in case of switched made between different options of a plan in the scheme.

The scheme will invest up to 80%-100% in money market securities and debt securities including government securities, corporate debt, securitized debt and other debt instruments and invest up to 20% in equity and equity related securities.

Investment in asset backed securities (securitised debt) will not exceed 20% of the net assets as at the time of purchase. Investment in derivatives instruments may be up to 50% of the net assets of the Scheme for the purpose of hedging and portfolio balancing purposes.

Equity and equity related securities include, convertible bonds and debentures and warrants carrying the right to obtain equity shares, ADRs / GDRs issued by Indian companies and foreign equities or similar /comparable instruments, derivative instruments like options and futures on equity securities/ indices, such other instruments as may be permitted under the regulations from time to time.

The Fund Manager may engage in Stock Lending, Not more than 20% of the net assets of the scheme shall generally be deployed in stock lending. Not more than 5% of the net assets of the scheme shall generally be deployed in stock sending to any single counter party.

The benchmark index for the scheme is CRISIL MIP Blended Index.

Sujoy Kumar Das will manage the fixed income and Prateek Agrawal will manage the equity investments of the scheme.

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