Money Today-Plexus Management new fund evaluation bring to you the report card of the Reliance Infrastructure Fund.
Scheme type: Open-ended infrastructure equity
Minimum investment: Rs 5,000 (retail); Rs 5 crore (institutional); unit price: Rs 10
Loads: Entry load 2.25%, Exit load 1% (less than one year)
Options: Growth (growth and bonus) and dividend (payout and reinvestment)
Investor grievances: Milind Nesarikar. Tel: 022-30414800; Fax: 022-30414899; E-mail: email@example.com
Objective: To offer long-term capital appreciation by investing predominantly in equity and equity- related instruments of companies engaged in infrastructure and related sectors. A secondary objective is to generate consistent returns by investing in debt and money market securities.
Benchmark: BSE 100
Fund manager: Sunil Singhania
Asset allocation: 65-100% equity and equity-linked, 0-35% debt & cash equivalent
Comparable existing schemes: Tata Infrastructure fund, ICICI Prudential Infrastructure fund
Idea distiller: Infrastructure continues to be a money spinner, though India lags behind other comparable countries. The fund house believes that on the back of political stability, the time is ripe for an infrastructure-based investment option.
Fund house report: Returns profile 3/5, risk profile 3/5
Fund manager’s report: Returns profile 3/5, risk profile 4/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: low
Returns possibility: medium
Who should apply: This fund could appeal to those who believe political uncertainty is over and that the global economies and markets are beginning to stabilise.
Comments: Infrastructure spending is likely to go up significantly and global funds will possibly tap into it for gains from such opportunities. The sector has seen the worst and best of times, but it could be the beginning of yet another positive cycle. Be prepared to hold for the next three years if you want to make the most of your investment.