Here we evaluate mutual funds and bring you the report card. This fortnight it's the Paribas Select Thematic Funds Energy Opportunities.
Offer open: Till 11 December
Scheme type: Closed-ended equity fund for three years
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: nil, Exit load: nil
Options: Growth and dividend payout
Investor grievances: S Balasubramanian. Tel: (044) 28578700. E-mail: firstname.lastname@example.org
Objective: To seek long-term capital appreciation by investing primarily in equity and equity-related instruments of companies in the domestic market that focus on or benefit from the developments in the energy sector.
Benchmark: BSE Oil & Gas Index
Fund manager: S Krishnakumar
65-100% equity in energy sector | 0-35% equity outside energy sector | 0-15% debt and cash
Comparable existing scheme:
Fund name: Reliance Diversified Power Sector
NAV (as on 20 November. Source: NAVIndia): Rs 52.48
3-year return(%): 87.6
1-year return(%): 132.4
Idea distiller: Establishment of new power plants and energy market deregulation gives a new impetus to infrastructure development. The higher rate of economic growth will keep generating higher demand for power.
Fund house report: Sundaram BNP Paribas manages assets worth Rs 12,109.89 crore.
Returns profile: 4/5 | Risk profile: 4/5
Fund manager report:
Performance of fund manager
Returns profile: 3/5 | Risk profile: 4/5
Scheme DNA: Four fundamentals of the fund scheme:
Unique idea: Medium | Return possibility: High | Risk: High | Operability: High
Who should apply: Though the fund is a little late with the energy stocks having already witnessed a steep rise, there is still scope for appreciation. Those looking for a sectoral allocation may invest.
Remember: It is one of the most promising sectors where scope for wealth creation is still immense. Investment horizon should be sufficiently long for an investor to discover value from this fund.