Mutual Fund Focus - Sundaram BNP Paribas Tax Saver

Investment Objective

• This schemes invests in equities and equity related instruments and is suitable for investors looking for capital growth
• Since, this scheme gives tax benefit u/s 80C, there is a lock in period of 3 years

Who Should Invest?

• An individual looking at investing for the long term horizon of at least 3-5 years
• An individual with moderate - high risk appetite
• An individual looking at Sec 80C for tax exemption up to Rs 100,000

About the Fund Manager - Mr. Satish Ramanathan

• Education: B.Tech and MBA degree
• Experience: Research and Fund Management role at Sundaram AMC and Fund Management at Franklin Templeton
• Other Schemes Managed: Sundaram BNP Paribas Balanced and Mid Cap Fund (Since Sep 07)

Scheme Details

Performance Review (As on 19th February 2009)

• Sundaram Tax Saver has always managed to outperform its benchmark (BSE 200)
• The scheme has deliveres 2nd highest returns (20.86%) in last 5yrs after SBI Magnum Tax Gain Scheme when the category average stands at 10.11% during the same period

Portfolio Analysis (As on 19th February 2009)

• Financial Services, Energy and Consumer Goods are the preferred sectors in the portfolio
• DLF, JP Associate and Cairn India, Satyam Computer Services and Suzlon Energy are the new entrants in the portfolio this month. This is the result of increasing exposure in construction and power sector

iTrust Observations

• The fund has consistently performed well when compared with its peers and the fund manager has always been able to generate excess returns (Alpha 1.14)
• This fund consistently follows the strategy of maintaining a large cap oriented portfolio with over 65% exposure to large cap stocks. Greater large cap holding brings stability in the fund's performance over the long term period
• Though the fund has a concentrated portfolio (30 stocks), but good exposure in large cap holdings and active portfolio management done by the fund manager has resulted in good performance of the fund

Risk Factors

• Liquidity: The funds invested will not be liquid because of 3 year lock in period to get the tax benefit u/s 80C
• Interest Rate Risk: The interest rate volatility in Indian markets may impact the NAV of the scheme by impacting the price of debt instruments
• Any interest rate changes in Indian market, changes in government regulations can have an adverse impact on the performance of the fund

Disclaimer

Neither the information, nor any opinion contained in this note constitutes a solicitation or offer by iTrust to buy or sell any mutual fund units. The information contained in this sheet is generic. Please consult your financial advisor for suitability of the product.
- MUTUAL FUNDS ARE SUBJECT TO MARKET RISK. PLEASE READ THE OFFER DOCUMENT CAREFULLY BEFORE INVESTING.