Media

Birla Top 100 fund launched

1st September, 2005

Birla Mutual Fund has launched Birla Top 100 fund, an open-ended equity scheme, which will focus on investing predominantly in a diversified portfolio of large cap stocks. Birla Top 100 fund is specifically designed for investors who seek exposure to a broader market and growth cum value style of investing.

The fund shall invest at least 65 per cent of its corpus in equity and equity-related securities of the top 100 Indian companies as measured by market capitalisation (stock market worth) and listed on stock exchanges. The remaining portion of the portfolio can be invested in equity and equity-related securities of companies other than the top 100 companies, which in the opinion of the fund manager have attractive growth prospects and potential to outperform the broad market indices.

"Benefits of investing in Birla Top 100 fund include access to a diversified portfolio of quality large cap stocks. The fund managers would endeavour to outperform the benchmark by taking focused exposures in a compact basket and alter weightages to various stocks and sectors," said Mr. S.V. Prasad, CEO, Birla Mutual Fund.

The new fund offer (NFO), which opened on 30 August 2005, will remain open till 28 September 2005. The scheme offers dividend (payout and reinvestment) and growth options. An investor can participate in the scheme with a minimum investment amount of Rs. 5,000/- and in multiples of Re. 1 thereafter. The issue price is Rs. 10 per unit (plus applicable entry load) during the new fund offer period.

Birla Sun Life Asset Management Company Ltd (BSLAMC), the investment managers for Birla Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financials Inc. of Canada. With total assets under management of over Rs. 11, 000 crore, BSLAMC has consistently endeavoured to provide investors with superior risk adjusted returns in a family of funds, which include diversified and focused equity schemes, balanced and monthly income funds, and a wide range of investment schemes designed to cater to every need of the investor.

Scheme objective
Birla Top 100 fund seeks to provide medium to long-term capital appreciation, by investing predominantly in a diversified portfolio of equity and equity related securities of top 100 companies as measured by market capitalisation.

Asset allocation pattern:
Equity and equity-related securities: 80 to 100 per cent (of which, top 100 market cap companies: 65 to 100 per cent and other companies: 0 to 35 per cent)

Money market instruments: 0 to 20 per cent.

Load structure: Entry Load: 2.25 per cent for each purchase / switch-in of units less than Rs. 5 crore in value; nil for each purchase / switch-in of units, equal to or greater than Rs. 5 crore in value.

Exit load: 1 per cent for any redemption / switch-out of units within 6 months from the date of allotment. Liquidity: The scheme will offer subscriptions and redemptions on all business days.

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 sponsor / 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 Top 100 fund is the name of the scheme and does not, in any manner, indicate either the quality of the scheme, its future prospects or returns. Investors should study the offer document carefully before investing. Unit holders in the scheme are not being offered any guaranteed / assured returns.

For more information please contact:
Mr. Ravi Sharma
Vice President - Marketing and Retail Sales
Tel: 91-22-5692 8052 (Direct), 5692 8000 (Board)
Fax: 91-22-5692 8110 / 5692 8111