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Mathematical stock selection

MONEY TODAY and Plexus Management evaluate the Lotus AGILE Fund and bring to you the report card.

Print Edition: Nov 29, 2007

MONEY TODAY and Plexus Management evaluate the Lotus AGILE Fund and bring to you the report card.

FUND FACTS

Offer open: Till 23 November

Scheme type: Open-ended equity

Minimum investment and subscription: Rs 5,000, Unit price: Rs 10

Loads: Entry load: 2.25%, Exit load: 1% if exiting within six months

Options: Growth and dividend (payout and reinvestment)

Investor grievances: Malati Majumdar. Tel: (022)66229666. E-mail: service@lotusindiaamc.com

FUND STATS

Objective: The scheme seeks to generate capital appreciation by investing in a passive portfolio of stocks selected from industry leaders on the basis of a mathematical model

Benchmark: S&P CNX Nifty Index

Fund manager: Nitish Sikand

Asset allocation: 90-100% equity and equity-linked, 0-10% debt and cash

Comparable existing scheme: None

FUND PROGNOSIS

Idea distiller: Investments made on the basis of this model have a better chance to outscore markets in both upswing and downswing.

Fund house report: Lotus India AMC, a fast-growing fund house, has an asset base of Rs 6,385.86 crore. It set up operations 15 months ago.

Track record: Returns profile - 5/5, Risk profile - 4/5

Fund manager report: Performance of fund manager

Track record: Returns profile - 5/5, Risk profile - 4/5

INVESTOR TAKEAWAYS

Who should apply: Anyone looking for a theme in equity investing that could prove to be a winner.

Remember: This is a first of its kind mutual fund. A mathematical model, instead of a fund manager, decides which stocks to buy. As a result clearly defined rules, and not fund manager's discretion, will guide investment strategy. This is likely to increase pure performance indicators and at the same time reduce chances of human error.

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