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Bharti AXA Tax Advantage Fund

Opening Date: 12th December 2008
Closing Date: 12th February 2009

What is Different?

Compared with Existing funds
  • Similar to Bharti AXA Equity fund, this fund also includes the Eco Plan option i.e.
    • Reduced use of paper for all investor communications leading to the reduction of 0.25% in expense ratio.
    • Investment up to Rs 2 lac is permissible under this plan.
    • If investment amount exceeds Rs 2 lac, the plan will automatically be converted to regular plan
  • Mix of top down and bottom up approach will be followed by the fund manager for portfolio management
  • The manager can adopt a buy and hold strategy, thus reducing the cost due to low portfolio turnover
  • Fund manager has the flexibility to invest in international securities and derivatives
  • The fund manager is not required to always provide for liquidity because of less redemption pressure.
  • Prateek Agrawal, the fund manager of this scheme, holds 14 years of investment research experience. He has spent 10 yrs in SBI MF, followed by 2.5 yrs experience in ABN Amro AMC. He is currently working as Head- Equities in Bharti AXA Asset Management

Suitability

  • An individual/corporate looking at investing for the time horizon of at least 3 - 5 years
  • An individual/corporate with medium to high risk appetite willing to invest in an equity diversified fund
  • An individual/corporate whose investment objective is capital appreciation or capital consumption
  • An individual looking at Sec 80C for tax exemption up to Rs 100,000

About Bharti AXA Asset Management Company

AXA Investment Managers Worldwide:
  • Established in 1994 as a standalone, wholly-owned subsidiary, AXA IM manages both AXA Group and third party assets.
  • AXA IM manages over 800 funds offering expertise across all major asset classes and the worldwide team comprises of 600 fund managers and research analysts.
Bharti AXA Investment Managers (BAIM) - India:
  • Bharti AXA Investment Managers Private Limited is a joint venture between AXA Investment Managers (74.9% stake) and Bharti Ventures Limited (24.1% )
  • BAIM boasts of huge presence in the country with the target of having branches in more than 50 locations.
  • Till date, Bharti AXA has launched 1 ELSS fund (Bharti AXA Tax Advantage Fund), 1 Equity Fund (Bharti AXA Equity Fund), 2 Liquid Funds, 1 Short Term Income Fund and 1 Fixed Maturity Plan till date

Peer Comparison

Peers in the category

Absolute Returns

CAGR

3 m

6 m

1 yr

3 yrs

5 yrs

Franklin India Tax Shield

22.5%

31.9%

46.8%

0.62%

15.5%

Sundaram BNP Tax Saver

16.7%

24.4%

44.1%

6.84%

22.5%

SBI Magnum Tax Gain

24.2%

35.3%

51.3%

1.32%

27.7%

BSE Sensex

24.3%

34.7%

47.1%

2.75%

13.1%

S&P CNX Nifty

24.2%

33.2%

46.6%

2.8%

11.7%
  • Most of the funds indicated above have managed to outperform their respective benchmarks in 5 yrs duration.
  • Over the long term, Equity Linked Saving Schemes manage to outperform the index with a good margin

Investment Objective

To generate income and long term capital appreciation through a diversified portfolio of predominantly

  • equity and equity related securities , including equity derivatives
  • provides income tax benefits under Sec 80C

Asset Allocation

Investments

Percentage

Risk

Equity and equity related securities

80% - 100%

High

Debt and money market securities

0% - 20%

Low - Medium

* The Scheme can invest up to 50% of its net assets in the equity derivatives instruments for the hedging purpose.

* The Scheme will not make investment in securitized debt.

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

Taxation Implications

Dividend Distribution Tax (DDT)

Nil

Long Term Capital Gain Tax (LTCG)

Nil

Security Transaction Tax (STT)

0.125%

General Information

Structure

An open ended Equity Linked Saving Scheme

NFO Price

Rs 10/- + applicable entry load

Plans

Regular and Eco

Options

Growth, Dividend Payout and Dividend Reinvestment

Fund Manager

Mr. Prateek Agrawal

Minimum Investment

Regular Plans

Lump Sum

Rs. 500 /-

Monthly SIP

Rs. 500 /- per month

Eco Plan

Rs. 500 /-

Minimum Additional Investment

Regular Plans

Rs. 500 /-

Eco Plan

Rs. 500 /-

Minimum Redemption

Rs 500 /- (or equivalent unit value) or account balance whichever is lower

Liquidity

Minimum 3 yr lock-in period for each installment invested

Benchmark Index

S & PCNX Nifty Index

Entry Load

Regular Plan

< 2 crore

2.25%

2 crore and above

Nil

Eco Plan

-

2.25%

SIP Investment

-

2.25%

Exit Load

Regular Plan

Nil

Eco Plan

Nil

SIP Investment

Nil

* 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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