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Reliance Infrastructure Fund

Opening Date: 25th May 2009
Closing Date: 23rd June 2009

What is Different?

Compared with Existing funds

The mandate includes extended definition of infrastructure that includes:

  • Banks and Financial Institutions
  • Construction and Engineering
  • Electrical and Electronic Equipments
  • Power and Energy
  • Telecommunication
  • Cement and Metals etc .

Compared with other related NFOs

  • The upcoming NFOs in the market such as Sundaram BNP Paribas Select Thematic Funds P.I.E (Power-Infrastructure-Energy), Franklin Build India Fund etc are inclined towards energy or infrastructure sector
  • Reliance Infrastructure fund has the flexibility to invest in international securities up to 20% of total net assets
  • The fund manager of RIF, Mr. Sunil Singhania, holds considerable experience in managing some of the best performing funds such as Reliance Diversified Power Sector Fund

Suitability

  • An individual/corporate looking at investing for the time horizon of 2-3 years
  • An individual/corporate with high risk appetite willing to invest in a sectoral biased fund
  • An individual/corporate looking at adding the infrastructure sector in an otherwise diversified portfolio

Peer Analysis

Fund name (< 1 yr = Absolute Reurns & > 1 yr = CAGR)

Compounded Annualized Returns

6 mths

1 yr

3 yrs

Tata Infrastructure Fund

 58.92 -9.53 20.82

ICICI Prudential Infrastructure Fund

 54.75 -4.99 28.21

Sundaram Capex Opportunities Fund

 70.78 -4.49 19.42

Sensex

 60.06 -5.79 16.40

*All the above mentioned infrastructure funds have always managed to outperform BSE Sensex with a except Tata Infrastructure Fund in last 1 yr performance

Asset Under Management (AUM) trend of Reliance Asset Management Company (AMC)

Investment Objective

Primary Objective:

To seek to generate capital appreciation and provide long-term growth opportunities by investing in companies

  • engaged in infrastructure and infrastructure related sectors
  • which are incorporated or have their area of primary activity in India

Secondary Objective:

To generate consistent returns by investing in debt and money market securities.

Asset Allocation

Investments

Percentage

Risk

Equity and equity related securities

 - High

Infrastructure and Related Sector

 65% - 100%

Debt Securities

 0% - 35% Low

Money Market Securities

 0% - 35% Low

*Fund manager can also take exposure in derivatives of infrastructure and infrastructure related sectors

*The Fund manager can invest in ADRs/GDRs issued by Indian or Foreign companies up to 20% of total net assets

Risk Factors

  • Currency Risk: Since the fund has an option of investing in international securities, the currency differentials might adversely affect the Rupee returns of the fund.
  • The performance of sectors covered such as industrial capital goods, power etc. has been very volatile in last 3 years, thus making the investment more risky.
  • Since the portfolio will be concentrated based on infrastructure theme, the investor might not enjoy the benefits of a diversified portfolio.
  • Interest Rate Risk: The interest rate volatility in Indian markets may impact the NAV of the scheme by impacting the price of debt instruments

General Information

Structure

An open ended Equity Scheme

NFO Price

Rs 10/-

Plans and Options

Growth, Bonus, Dividend Payout, and Dividend Reinvestment

Fund Manager

Mr. Sunil Singhania

Minimum Investment

Rs 5000

Benchmark Index

BSE 100

Entry Load

 Below 2 crores 2.25%
2 crores to 5 crores 1.25%
5 crores and above Nil

Exit Load

 Before 1 year and < than 5 cr 1%
After 1 year & < than 5 cr Nil

Taxation Implications

Dividend Distribution Tax

 Nil

Short Term Capital Gain Tax

 16.995%

Long Term Capital Gain Tax

 Nil

Security Transaction Tax

 0.125%

*Short Term Capital Gain Tax percentage is inclusive of surcharge and education cess applicable

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.


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