Money Today-Plexus Management new fund evaluation
Offer open: Till 23 July 2008
Scheme type: Open-ended diversified equity fund
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: 2.25% Exit load: 1% (before 6 months) 0.5% (before one year but after 6 months)
Options: Growth and dividend (payout, reinvestment and transfer)
Investor grievances: Rohit Chawda; Tel: (022) 6780 0300 chawda.rohit@miraeassetmf.co.in
Objective: Long-term capital appreciation by investing in companies in commodity businesses. At least 65% of corpus to be invested overseas
Benchmark: MSCI Asia Pacific ex Japan and India Energy and Materials Index (55%) + MSCI Brazil Energy and Materials Index (10%) + BSE 200 (35%)
Fund manager: Gopal Agarwal and Neelesh Surana (India); Dae Kyun Mok (Overseas)
65-100% Asia pacific and/or emerging markets
0-35% Indian equities but not only in commodity businesses
0-35% Money market and debt instruments
Comparable existing schemes:
Fund Name:ICICI Pru Indo Asia Equity Fund
NAV* (Rs): 8.04
6-month return(%): -25.28
Since inception(%): -18.71
*NAV as on 27 June. Source: NAVIndia
Idea distiller: The commodity cycle is not over and is likely to pick up steam. Investing in the cycle could be profitable in the medium term
Fund house report: Existing scheme in the fund house yet to complete a year
Fund managers report: Performance of fund manager
Returns profile: 3/5
Scheme DNA:
Unique idea: Medium
Four fundamentals of the fund scheme
Return possibility: Medium
Risk: Medium
Operability/complexity: Medium
Who should apply: Returns may not be commensurate with risks associated with this fund. Invest if you wish to diversify and have an exposure to global commodity markets. Invest for at least 3 years
Comments: Though the commodity cycle is tough to predict, consumption of commodities is likely to keep rising in the two Asian giants (China and India) for some time. Whether it will translate into a higher scrip can’t be said for sure in the long term, but in the medium term (less than 3 years), one can expect an appreciation
