One of its Kind

MONEY TODAY and Value Research team up to analyse select new schemes being launched by fund houses

Print Edition: January 25, 2007

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 10Unit cost during NFO : Rs 10
 Type of fund :Close-ended ELSSType of fund  :Hybrid debt-oriented
 Options :Growth, dividend payout, reinvestment  and transferOptions :Growth, dividend payout, reinvestment
 Minimum investment :Rs 500Minimum investment :Rs 5,000
 Benchmark :BSE 200 Benchmark :CRISIL MIP Blended Index
 Fund Manager :Sandip SabharwalFund Manager  :Sajit Pisharodi and Ritesh Jain
 Offer closes :29 March Offer closes :25 January

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