It is that time of the year again—six ELSS funds have been launched since November 2006! Of these six, only the Optimix RetireInvest Series I has something new to offer by way of an investment strategy. While this fund too aims to provide long-term capital appreciation by investing predominantly in equity and equity-related securities, it intends doing so with the manage-the-manager approach.
Positioned as first of its kind, the strategy is different from the fund of funds strategy, since the funds will not be invested in existing schemes. Funds of Optimix RetireInvest will be deployed on the basis of advice from third party investment advisers selected by the Optimix Investment Team in accordance with the Optimix Multi Manager Investment process.
Little can be said on the past performance of the multi manager approach of Optimix as their first fund—a debt-oriented fund of funds—was launched only in April 2006. The first equity-oriented fund was launched in July 2006.
Sajjan Raut Desai is the fund manager for the Optimix Retire- Invest Series I. He has been with the fund house since October 2005. Prior to joining Optimix, he has worked with ICICI Bank as the head, financial advisory, and BNP Paribas as the head of the Equity Advisory Group.
| Scheme Details | Benchmark: S&P CNX Nifty Indx |
| Offer Closes: 6 March | Fund Manager: Sajjan Raut Desai |
| Load Structure: As it is a closed-end fund, there will be no entry load.There is no fixed exit load but the units will be redeemed after recovering the balance proportionate unamortised issue expenses. | Asset Allocation: Equities and equity related instruments including derivatives 80-100% Debt and money market instruments up to 20% |
The fund is close-ended with a 10-year tenure. It offers growth and dividend payout options. S&P CNX Nifty Index is the benchmark chosen to track the fund’s performance. After the three-year lock-in period, redemptions before the maturity period can be made on any business day.
| Other NFOs Source: Value Research | |||||
| JM Equity Tax Saver Series I | Kotak Wealth Builder Series I | ||||
| Unit cost during NFO | : | Rs 10 | Unit cost during NFO | : | Rs 10 |
| Type of fund | : | Close-ended ELSS | Type of fund | : | Hybrid debt-oriented |
| Options | : | Growth, dividend payout, reinvestment and transfer | Options | : | Growth, dividend payout, reinvestment |
| Minimum investment | : | Rs 500 | Minimum investment | : | Rs 5,000 |
| Benchmark | : | BSE 200 | Benchmark | : | CRISIL MIP Blended Index |
| Fund Manager | : | Sandip Sabharwal | Fund Manager | : | Sajit Pisharodi and Ritesh Jain |
| Offer closes | : | 29 March | Offer closes | : | 25 January |
