Birla Sun Life AMC introduces Capital Protection Oriented Fund Series 6
18th May, 2011
Mumbai: Birla Sun Life Asset Management Company Ltd (BSLAMC), one of the leading asset management companies in India, has announced the launch of its New Fund Offer - Capital Protection Oriented Fund (CPOF) Series 6, a close ended capital protection oriented scheme, which is an appealing alternative to the traditional investment options like Fixed Deposits. The scheme has a tenor of 761 days and is oriented towards protection of the invested money by investing into high quality bonds (debt) till the end of tenure and exploring capital growth prospect by investing a part of the capital for equity market exposure.
Mr. A Balasubramanian, CEO, BSLAMC, said, "BSLAMC has been amongst the pioneers in this category. Our earlier launches in this category, Capital Protection Oriented Fund Series 3, 4 and 5, received good response from investors."
"Investors who not only look for protecting his / her hard earned money but also look for investment options that can provide returns on their capital, will find this an attractive proposition," he added.
This product is so designed to keep the investors' money safe. At the same time it allows the investor an opportunity to take a small exposure to equity market through investing in premium of exchange traded index options. The returns of such funds are also more tax-efficient as compared to traditional deposits.
BSL CPOF Series 6, has been rated mfAAA(so) by ICRA. The fund offers growth option only, with minimum application amount of Rs5,000 and multiples of Rs10 thereafter during the new fund offer period. Non-Resident Indians (NRIs), Foreign Institutional Investors (FIIs) and Person of Indian Origins (PIOs) are also eligible to invest in the scheme on a full repatriation basis. Benchmarked against CRISIL Balanced Fund Index, the fund has no entry and exit load. It shall be open for subscription till 30th May 2011.
The redemption of units shall be allowed only at the maturity of the scheme. However, the fund shall be listed on stock exchanges, and investors can buy sell units of the fund there. Although it is always recommended to hold the units of capital protection oriented schemes till maturity to derive the potential benefits that can be offered by the scheme.
About Birla Sun Life Asset Management Company Ltd
Established in 1994, Birla Sun Life Asset Management Company Limited (BSLAMC) is a joint venture between Aditya Birla Group, a well known Indian conglomerate and Sun Life Financial Inc, a leading international financial services organisation from Canada.
BSLAMC is the 5th largest asset management company in India with domestic average assets under management of US$14 billion for the quarter, January - March 2011. An impressive mix of reach through 103 branches, wide range of product offerings across equity, debt, balanced as well as structured asset classes and strong investment performance has helped the Company garner over 2.4 Million investor scheme accounts. Known for its consistent investment performance across asset classes, BSLAMC has received recognition from various institutes of international repute like Lipper, Outlook Money and The Asset Magazine - Hong Kong.
About Aditya Birla Financial Services (ABFSG)
The Aditya Birla Financial Services Group (ABFSG) has built a significant presence across its verticals, viz., life insurance, asset management, NBFC, private equity, broking, wealth management and distribution and general insurance advisory services.
The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance Company Ltd, Birla Sun Life Asset Management Company Ltd, Aditya Birla Finance Ltd, Aditya Birla Capital Advisors Pvt Ltd, Aditya Birla Money Ltd, Aditya Birla Money Mart Ltd and Aditya Birla Insurance Brokers Ltd. ABFSG is committed to being a leader and role model in a broad based and integrated financial services business. Its 7 lines of businesses, with about 5.5 million customers manages assets worth US$18 billion approximately and prides itself for having a talent pool of about 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India through over 1600 points of presence and about 200,000 channel partners. This allows ABFSG to offer its customers virtually anything under financial services except a savings or current account. With revenue of over US$1.25 billion (in 2009-2010) ABFSG is a significant non bank player.
ABFSG is a part of Aditya Birla Nuvo Ltd (ABNL), a US$3.5 billion conglomerate having leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a US$30 billion Indian business house operating in 27 countries across the globe.
About Sun Life Financial
Sun Life Financial is a leading international financial services organisation providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2011, the Sun Life Financial group of companies had total assets under management of Canadian $469 billion. For more information please visit www.sunlife.com
Sun Life Financial Inc trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
For more details contact:
M: +91 9702700333
Statutory Details: Constitution: Birla Sun Life Mutual Fund (BSLMF) has been set up as a Trust under the Indian Trusts Act, 1882. Sponsors: Aditya Birla Financial Services Pvt. Ltd. and Sun Life (India) AMC Investments Inc. [liability restricted to seed corpus of Rs1 lakh] Trustee: Birla Sun Life Trustee Company Pvt. Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd. Scheme Classification & Objective: Birla Sun Life Capital Protection Oriented Fund-Series 6: (Close ended Capital Protection Oriented Scheme) which seeks to provide capital appreciation linked to equity market with downside protection at the end of tenure and expects to achieve down side protection by investing in debt securities with tenure comparable with the tenure of the Plan, subject to the credit risk. Fund expects to achieve the market-linked appreciation (upside) by investing in premium of exchange traded options and proposes to restrict its derivative exposure only to the extent of buying of call options. Hence the maximum loss could be equivalent to the premium paid, not any more, Moreover, the premium paid will be equal or lower to the coupon receivable from fixed income securities after providing for fund expenses. Tenure of scheme: 761 days from and including the date of allotment. Asset Allocation: Debt securities and Money Market Instruments: 80 -100 per cent, Options Premium: 0 - 20 per cent. (The Option Premium shall be for the purpose of exposure to derivative instruments which shall be restricted to long call options. The Options Premium offers the actual equity market exposure.) Asset Allocation shall be subject to such conditions/restrictions more specifically contained in SID. Issue Price: Rs.10 per unit during the NFO period. Risk Factors: Mutual Funds and securities investments are subject to market risks and there can be no assurance or guarantee that the objectives of the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme may go up or down depending on the various factors and forces affecting capital markets and money markets. Past performance of the Sponsors / Investment Manager / Mutual Fund does not indicate the future performance of the Scheme and may not necessarily provide a basis of comparison with other investments. Birla Sun Life Capital Protection Oriented Fund-Series 6 is only the name of the Scheme and does not in any manner, indicate either the quality of the Scheme or its future prospects or returns. Unit holders in the scheme is not being offered any guaranteed/assured returns. Scheme Specific Risk Factors: The ability of the portfolio to meet capital protection on maturity to the investors can be impacted by interest rate movements in the market, credit defaults by bonds, expenses and reinvestment risk. Listing of units of the scheme on stock exchange(s) does not necessarily guarantee liquidity and there can be no assurance that an active secondary market for the units will develop or be maintained. Consequently, the Scheme may, depending on the market forces, even quote below its face value / NAV. Scheme is required to have a minimum number of 20 investors and no single investor should account for more than 25 per cent of its corpus immediately after the close of the NFO i.e. at the time of allotment. In case of non-fulfillment of any one of the aforesaid criteria, scheme shall be wound up by following the guidelines prescribed by SEBI. Investments in the scheme shall be subject to various other risk factors including but not limited to risks associated with: investment in Derivatives, investment in Debt Securities such as Price-Risk or Interest Rate Risk, Credit Risk, Liquidity or Marketability Risk, Reinvestment Risk etc. For further Scheme Specific Risk Factors and other details Investors should read the Statement of Additional Information/Scheme Information Document/Key Information Memorandum available at Investor Service Centres and with Distributors carefully before investing. Please refer www.birlasunlife.com for further details.