Fund Facts:
Offer open: Till 27 March 2008
Scheme type: Open-ended fund of fund
Minimum investment: Rs 5,000; unit
price: Rs 10
Loads: Entry load: 2.25%.
Exit load: 0.5% (if less than one year)
Options: Growth and dividend (payout and reinvestment)
Investor grievances: Gaurav Nagori.
Tel: (022) 66578000. Email: gaurav_nagori@ml.com
Objective: To generate capital appreciation by investing in equity-related securities of companies in India and abroad, which are involved in the natural resources, alternative energy and energy technology sector. Can also invest in select Merrill Lynch funds and similar other mutual fund schemes overseas.
Benchmark: 30% BSE Metal, 35% BSE Oil & Gas, 35% MSCI World Energy
Fund manager: Anup Maheswari (equity-India), Dhawal Dalal (Indian debt and money market) and Aditya Merchant (overseas)
Asset allocation:
65-100% Equity and equity-linked companies in India
0-35% Equity and mutual fund schemes overseas
0-20% Debt and money market instruments
Comparable existing scheme:
Fund name: Reliance Diversified Power
NAV* (Rs): 65.87
3-month return(%): -17.49
1-year return(%): 96.94
*NAV as on 12 March. Source: NAVIndia
Idea distiller: Natural resources are finite but technologists have tweaked the inputoutput ratio favourably; this will further improve with newer developments. The Merrill Lynch backing will bring global vision which would provide better returns.
Fund house report: DSPML has been in the business of asset management for 11 years in India, managing funds worth Rs 19,139 crore (as on 28 February).
Returns profile: 3/5
Risk profile: 3/5
Fund managers report: Performance of fund managers
Returns profile: 4/5
Risk profile: 4/5
Scheme DNA:
Unique Idea: High
Four fundamentals of the fund scheme:
Return Possibility: High
Risk: High
Operability/Complexity: High
Investor Takeaways:
Who should apply: Natural resource is a broad canvas and it could be a sure winner for the next three years or more. Active handholding is assured from the global partners. You can invest in this, especially now that the global meltdown has brought down prices.
Remember: Recent performance of existing domestic funds has been patchy. But this fund is different and the NFO timing is right.
