Posts filed under 'Lotus India Mutual Fund'
Lotus India AMC is slowly building its product offering. This time it has done so with the introduction of two new funds - one in the Mid Caps space while the other that takes a contrarian style of investment.
With this, Lotus India’s basket includes:
Lotus India Liquid Fund
Lotus India Tax Plan
Lotus India Liquid Plus Fund
Lotus India FMP
Lotus India Mid Cap Fund
Lotus India Contra Fund
The previous scheme from Lotus India AMC is the Lotus India Tax Plan (ELSS).
Lotus India seems to be aggressive in terms of rolling out products much faster compared to other AMCs of its type. Fidelity, for instance, has only 6 products even after being in the Indian Mutual Fund market for over a year now. Looks like Lotus India does not want to loose any time and gain as much experience and insight on Indian market as early as possible. Of course, India mutual funds cannot ignore this booming indian market period.
Ajay Bagga, Chief Executive Officer, Lotus India AMC, at the time of the launch of the schemes said, “We are certain that on the back of the expertise of our fund management process and our investing philosophy, the Lotus India Contra Fund and the Lotus India Mid Cap Fund will be able to deliver long term value to all its investors.”
Do read our take on the Lotus India Mid Cap Fund and Lotus India Contra Fund.
February 27th, 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
February 27th, 2007
Many say that this is the year of the midcaps and many midcap schemes from other leading AMCs which have already experienced good number of markets cycles by now are all set to unlock the real value of the stocks in their portfolio now. Lotus India Mid Cap Fund is a closed ended equity scheme with a maturity of 3 Years. Its investment objective is as follows: “The Scheme seeks to provide long term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of mid cap companies. However, there can be no assurance that the fund’s objectives will be achieved.”
The minimum application amount for this scheme is Rs. 5,000/- plus in multiples of Re.1/-. Resumptions can be made at specified resumption period for a minimum of Rs. 1,000/- or 100 units. Since this is a close ended fund, SIP facility will not be available.
The good news for this scheme is that there is no entry load. Exit load will be applicable on redemption before maturity of the scheme, investors will be charged balance proportionate unamortized issue expenses on the applicable NAV.
Tridib Pathak will be the fund manager for this scheme. CNX MIDCAP Index will be taken as the Benchmark Index.
The Lotus India Midcap Fund NFO opens on February 15, 2007 and closes on March 15, 2007
Our take on Lotus India Midcap Fund
Lotus India AMC is a new fund house and its existing products have not yet been into a good number of complete market cycles yet. Added to this, midcaps space in general is a high risk area. Though midcaps stocks are stealing the show in the current market conditions, things can change a lot either ways in a 3-year term. Since this scheme is a close ended fund and the existing funds of this AMC are doing normal if not extraordinarily (NAV of few of their existing schemes are currently below the NFO levels), we think new investors should stay away from the fund. There are many other midcap funds from other fund houses that have experienced reasonably good number of market cycles and have been tested well by investors too.
However, this fund is good for high risk taking investors who can really wait till the end of the 3-year duration to get the returns - particularly because there is no entry and exit loads (if investment is put for the entire 3 year period).
NAVs of select Midcap schemes
Birla MIDCAP Fund-Plan A (Dividend) - 22.84
Birla MIDCAP Fund-Plan B (Growth) - 63.5
DBS Chola Mid Cap Fund-Cumulative - 25.73
DBS Chola Mid Cap Fund-Dividend - 14.85
DBS Chola Multi-Cap Fund-Cumulative Option - 18.05
DBS Chola Multi-Cap Fund-Dividend Option - 14.39
DSP Merrill Lynch Small and Mid Cap Fund - Institutional Plan - Dividend - 10.32
DSP Merrill Lynch Small and Mid Cap Fund - Institutional Plan - Growth - 10.32
DSP Merrill Lynch Small and Mid Cap Fund - Regular Plan - Dividend - 10.298
DSP Merrill Lynch Small and Mid Cap Fund - Regular Plan - Growth - 10.298
HSBC Midcap Equity Fund-Dividend - 15.8126
HSBC Midcap Equity Fund-Growth - 19.3605
ING Vysya Midcap Fund-Bonus Option - 16.76
ING Vysya Midcap Fund-Dividend Option - 15.33
ING Vysya Midcap Fund-Growth Option - 16.76
Kotak-Mid-Cap-Dividend - 15.31
Kotak-Mid-Cap-Growth - 19.955
Sahara Midcap Fund-Auto Payout - 17.8219
Sahara Midcap Fund-Bonus - 17.8219
Sahara Midcap Fund-Dividend Plan - 15.907
Sahara Midcap Fund-Growth Plan - 17.8219
SBI Magnum MIDCAP FUND - DIVIDEND - 18.94
SBI Magnum MIDCAP FUND - GROWTH - 22.05
Sundaram BNP Paribas Select Midcap-Dividend - 15.4563
Sundaram BNP Paribas Select Midcap-Growth - 90.2151
Tata Mid Cap Fund - Dividend - 13.8548
Tata Mid Cap Fund - Growth - 13.8562
UTI Mid Cap Fund-Growth Option - 21.69
UTI Mid Cap Fund-Income Option - 18.36
February 27th, 2007
Lotus India Mutual Fund announced it will be revising the exit load for its Lotus India Liquid Plus Fund.
The exit load would be applicable for all redemptions within 7 days from date of allotment. Previously, it was for all redemptions within 15 days from date of allotment.
Exit Load (Revised): If redeemed with 7 days from the date of allotment: 0.10%; If redeemed after 7 days from the date of allotment: NIL
February 13th, 2007
Tridib Pathak, Chief Investment Officer- Equity, Lotus India AMC will speak on Volatility of the Mutual Fund Industry and Markets on Zee Business in its ‘Special Report’ program. The program will be on air 25th January 2007 from 2:00 p.m. to 2:30 p.m.
January 25th, 2007
Next Posts