SBI MF has done it once again. The announcement of a dividend of 40% on a face value of Rs. 10 or Rs. 4 per unit. May 16, 2008 will be taken as the record date for distribution of the dividends. The earlier dividend announcements are made in May 2007 and April 2006, both of which are of 40%
Add commentMay 14th, 2008
Investors in SBI Magnum Sector Umbrella Contra Fund - Dividend option will get a dividend of Rs. 4 per unit on the face value of Rs 10 per unit. The record date will be taken as May 11, 2007.
The investment objective of the fund is ‘To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. There are five sub-funds dedicated to specific investment themes viz. Information Technology,Pharmaceuticals, FMCG, Contrarian (investment in stocks currently out of favour) and Emerging Businesses. ‘
The NAV of the Dividend Plan is 29.18 and for the Growth plan is 38.73
Add commentMay 10th, 2007
The Lotus India Contra Fund fund is an open ended equity scheme whose investment objective is as follows:
The investment objective of the Scheme is to generate capital appreciation through investment in equity and equity related instruments. The Scheme will seek to generate capital appreciation through means of contrarian investing. However, there can be no assurance that the investment objective of the Scheme will be realised.
Contrarian investing involves picking ‘neglected stocks’ with strong asset values as well as focusing on high potential under owned sectors. The aim is to have a first mover advantage by investing into out of favour sectors/stocks thus increasing out-performance prospects. This can be done by monitoring stock/sector ownership and relating it to the fundamentals of the sector with an objective to get out of over-owned stocks and get into under-owned ones.
The scheme will invest upto 65-100% in Equity and Equity related instruments while 0-35% goes into Debt & Money Market instruments including securitized debts (excluding foreign securitized debt) upto 100% of the debt component.
The minimum application amount is Rs. 5,000/- per application & in multiples of Re.1/- for purchasing. Additional purchases can be made in Rs. 1,000 per application & in multiples of Re. 1. For redumptions, the minimum amount is Rs. 1,000/- or 100 units. Investments can be made through the SIP route as well. For this, the minimum amount of each installment shall be Rs. 1000 and in multiples of Rs. 100 in case of Monthly SIP and Rs. 1500 and in multiples of Rs. 100 in case of Quarterly SIP.
Load structure
The Entry Load for the scheme is 2.25 (where purchase amount is less than Rs. 5 Crores) and nil when purchase amount is equal to or greater than Rs. 5 Crores or in case of units are allotted upon reinvestment of Dividends or where the investor is a Fund of Funds, as defines under SEBI Regulations, 1996.
An exit load of 1.00% applies if units are redeemed on or before the expiry of 6 months from the date of allotment. A 0.6% exit load is applicable if redeemed after 6 months and on or before the expiry of 1 year from the date of allotment. There will be no exit load if redeemed after the expiry of 1year from the date of allotment or for redemption, where the initial purchase is equal to or greater than Rs. 5 Crores.
Tridib Pathak will be the fund manager for this scheme. BSE 500 is taken as the Benchmark Index.
Our take on Lotus India Contra Fund
Contrarian style of investments generally take long time and investors needs to be really patient, in some cases for few years, to get the real benifit. We suggest this scheme for those who can wait for long periods holding their investments. And for those who would like to be more cautious, the SIP route is suggested to take advantage of ruppee cost averaging. For this type of investors, money can be parked in in Lotus India’s Liquid Fund or Liquid Plus Fund and a systematic fund transfer can be made.
NAVs of select contra schemes
DBS Chola Contra Fund-Cumulative Option - 11.14
DBS Chola Contra Fund-Dividend Option - 11.14
Kotak Contra Scheme—Dividend - 14.365
Kotak Contra Scheme—Growth - 14.365
SBI MSFU CONTRA-DIVIDEND - 28.08
SBI MSFU CONTRA-GROWTH - 37.27
Tata Contra Fund - Dividend - 11.1149
Tata Contra Fund - Growth - 11.1187
UTI Contra Fund-Growth-Growth Option - 9.25
UTI Contra Fund-Income-Dividend Option - 9.25
Add commentFebruary 27th, 2007
JM Financial Mutual Fund has filed draft offer document before SEBI for its upcoming contra fund. The JM Contra Fund will be an open ended equity oriented fund. Units in this scheme can be purchased at Rs. 10/- per unit subject to the applicable load. Of course, most of the recent NFOs are now charging load charges upfront. As per the rules of amortisation, fund houses have to charge the issue expenses upfront in case of open-ended funds. Close-ended fund however can charge the issue expenses over the tenure of the fund. This means, for a close-ended fund, the fund house can charge the initial expenses spread over 3 years for a 3-year close ended fund.
Coming back to the JM Contra Fund, the investment objective of the scheme is to provide capital appreciation by following contrarian style of investing i.e. buying into fundamentally sound stocks that have been overlooked by the market for reasons such as short term trend and waiting for the market to give these stocks their real value in course of time.
The Minimum application amount is Rs. 5,000/- per Plan / Option and in multiples of Re.1/- thereafter during the New Fund Offer period, and in case of first time investments. For ongoing investments in an existing folio the investment would be Rs. 1,000/- and in multiples of Re. 1/- thereafter.
The Entry Load for JM Contra Fund will be 2.25% for investments less than Rs. 5 Crores and Nil for investments over and above Rs. 5 Crores. There will not be any Entry Load for investments made under Systematic Investment Facility (SIF). SIF is JM’s word for the popular industrial term Systematic Investment Plan or SIP.
In regard to Exit Load, the fund charges 1% if redeemed within 6 months of allotment of units /
transfer and in case of investments made through SIF, it will be 2.25% if redeemed within 1 year of allotment / transfer of units.
A look at NAV’s (as on February 20, 2007) of some Contra schemes from other fund houses
DBS Chola Contra Fund - Cumulative Option; 11.53
DBS Chola Contra Fund - Dividend Option; 11.53
Kotak Contra Scheme - Dividend;14.814
Kotak Contra Scheme - Growth;14.814
SBI MSFU Contra - Dividend;28.89
SBI MSFU Contra - Growth;38.35
Tata Contra Fund - Dividend;11.5873
Tata Contra Fund - Growth;11.5913
UTI Contra Fund - Growth-Growth Option;9.68
UTI Contra Fund - Income-Dividend Option;9.68
Add commentFebruary 21st, 2007
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| « Apr | ||||||
| 1 | 2 | 3 | 4 | |||
| 5 | 6 | 7 | 8 | 9 | 10 | 11 |
| 12 | 13 | 14 | 15 | 16 | 17 | 18 |
| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
| 26 | 27 | 28 | 29 | 30 | 31 | |