Religare MF launches Business Leaders Fund

Religare Mutual Fund has launched Religare Business Leaders Fund, an open ended equity scheme. The objective of the scheme is to generate long term capital appreciation by investing in equity and equity related instruments including equity derivatives of companies which in our opinion are leaders in their respective industry or industry segment. These companies are expected to do better than others in their industry in all economic environments in terms of growth, margins and profitability. Typically, companies which are leaders are expected to exhibit one or more of the following attributes

1) Better Pricing Power 2) Superior Cost Structure / Efficiencies 3) Significant Sustainable Competitive Advantages 4) Better Access to Capital. These then reflect in the company being in Top 3 – 5 in terms of market share, having margins and growth rates better than the industry or industry segment average. (View - New Fund Offers open NOW)

Speaking on the occasion, Saurabh Nanavati, Chief Executive Officer, Religare Mutual Fund said, “The ability of business leaders to survive the hard times, when marginal players are taking a beating and thrive in good times makes them an attractive long term investment proposition and this fund is recommended for all investors as core holding for their investment portfolio”

The fund will adopt a bottom up & top down approach to create a diversified portfolio of stocks aided by Religare AMC’s proprietary Stock Categorisation Philosophy. The fund universe will consist of leaders across sectors. In many industries or sectors (total of 38 as per AMFI) the leaders are midcap companies. The fund will therefore invest in both the large cap and midcap space.

Speaking about the newly introduced norms of No Entry-Loads in the MF industry, Mr. Nanavati commented “Norms are changing globally in the financial selling place and disclosures are becoming mandatory in various parts of the world. The decision has already been taken by SEBI and we need to look ahead. Religare Mutual Fund sees itself as a manufacturer of products and will keep launching new products to complete its product suite in all categories – viz. equity, debt and alternative asset classes. We also firmly believe in transparency and the reason for the NFO remaining open only up to 31st July 2009 i.e for 21 days as against 1 month which is the industry norm, is that investors should not feel confused with the new SEBI rules of No-Load, coming in force from 1st August 2009, while an NFO opening before 31st July can actually charge the load even after 1st August 2009 as per the SEBI circular.” 

The new fund offer (NFO) open for subscription from July 10 to July 31, 2009. The fund will re-open on August 29 2009.  The face value of the new issue will be Rs 10 per unit.

The scheme offers Growth and Dividend Options. The dividend option offers dividend payout and dividend reinvestment facility.

The minimum investment amount is Rs 5,000/- and in multiple of Re.1/- thereafter.

During NFO Period - Entry Load: 2.25% for investment less than Rs 2 crores and 1.25% for investment equal to or less than Rs 2 crs. Exit Load 1% for investment less than Rs 5 crs, if redeemed on or before 1year from the date of allotment.

The scheme will invest upto 80%-100% in equity & equity related instruments of companies which in our opinion are leaders in their respective industry or industry segment. The scheme will also invest 0-20% in money market instruments & debt securities. Investment in securitized debt including pass through certificate (PTC) shall not exceed 20% of the net assets of the Scheme. The Scheme will not invest in foreign securitized debt.

The Scheme may use derivatives for purposes as may be permitted from time to time. The maximum derivative position will be restricted to 50% of the net assets of the Scheme. The Scheme may seek investment opportunity in foreign securities in accordance with the guidelines stipulated by SEBI and RBI from time to time. The exposure to foreign securities (including mutual fund and other approved securities) shall not exceed 50% of the net assets of the Scheme.

The benchmark index for the scheme would be S&P CNX Nifty. The scheme will be manage by Vetri Subramaniam.

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