SBI PSU FUND

MUTUAL FUND:  An open ended diversified equity fund.

Fund Objective:

Long Term growth opportunities in capital along with the liquidity through an active management of investment in a diversified basket of equity/ debt/ Money market instruments of domestic public sector undertakings.

Investment Strategy:

Invest in stocks of PSUs through primary as well as secondary market, private placement/ QIP, Preferential allotments etc.

Recommendation:

Why Only in PSUs? Invest in PSUs will make this fund safe with lower risk but at the same time return may be at average level as PSUs are not aggressive expect some sectors like Banks. Even presently disinvestment is not getting proper response. This may be a good fund but recommended not to subscribe presently.

FUND BRIEF:

Face Value: Rs. 10

Launch Date: NFO Closed on 14.06.2010

Net Assets: Not Available (New Fund, NFO Closed Recently and fund will re-open in next 1 month)

Fund Plan/ Option: Regular. SIP Available Option: Growth and Dividend

Minimum Amount: Regular: Rs 5,000. For SIP monthly: N.A.

Entry Load: Nil

Exit Load: For Regular Plan: 1% in 1st 3 Years For SIP: 1% in 1st 3 Years

Annual Recurring Expenses(Charges): 2.5%P.A. Of Weekly Average Net Assets

Assets Allocation:                                                      Min-Max

Equity and Related                                                    65%-100%

Debt and Money market Securities                                 0%-35%

Benchmark: BSE PSU INDEX

PEER PERFORMANCE:1. Religare PSU Equity:

Launched in October 2009. Trailing return of Religare PSU Fund: As on 18 Jun 2010

Period                             Fund Performance                                 Category Performance

Year to Date                         1.55 %                                                        3.29 %

1-Month                               2.05 %                                                        2.2 %

3-Month                               4.6 %                                                          2.68 %

Category: Equity Diversified

2.UTI PSU Fund

Launched in March 2004 and merged in 2007 with UTI Top 100 Fund. Return in year 2006 and 2007 were negative.

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TATA EQUITY PE FUND

MUTUAL FUND:  Open Ended Diversified Equity Fund

Fund Objective:

To provide reasonable and regular income along with possible capital appreciation to its unit holder.

Investment Theme:
Investing 70% of the total assets in stocks having a trailing P/E ratio less than that of the BSE Sensex at the time of investment.

Others:

· Automatic Dividend Trigger Option : Fund will declare dividend automatically when NAV appreciate 5% (Option A) and 10% (Option B) (maximum one dividend per quarter).
· Fund has been performing very well in long term as compared to category (Equity Diversified) and benchmark. However, the short term performance is below average.
· The Fund Manager Mr Sachin Relekar has chosen traditional fund portfolio with main focus on Energy, Finance and Technology sectors. Hindalco, ONGC and Bharti Airtel from BSE Sensex are among top 15 stocks in the fund portfolio. His diverse portfolio won’t see much aggression with individual stock bets.
· The fund is sitting on a cash of almost Rs 70 Crore. As per fund manager, this is not cash call but gives them the flexibility to pick stocks in distress.
· Currently Portfolio PE 17.11 is undervalued and may go up with any upward movement in the market. Also, 13% approx net asset in form of cash & equivalent will provide opportunity in case of any correction in the market.


Recommendation:
The Investment theme of the fund, automatic dividend option and robust long term performance made this fund attractive. We may invest in this fund with long term investment horizon (more than 1 year) in mind.

FUND BRIEF:
FACE VALUE: Rs. 10
LAUNCH DATE: Jun, 2004
NET ASSETS: Rs 540 Crore (31/05/10)FUND PLAN & OPTION: Pan: Regular Plan. SIP available. Option: Growth and DividendMINIMUM AMOUNT: Regular: Rs 5,000. For SIP monthly: Rs 500 for 12 months.RISK/ REWARD: Grade: Average Risk with above average returns.

NAV DETAILS:       Growth Option                  Dividend Option
LATEST NAV:         Rs.44.46 (14/06/10)           Rs.39.40 (14/06/10)
52-Week High:       Rs.45.46 (18/01/10)           Rs.43.17 (15/01/10)
52-Week Low:       Rs.28.99 (13/07/09)           Rs.27.60 (13/07/09)

ASSETS ALLOCATION:

Type                                                      Standard Min-Max           Current Position
Equity and Related                                         70%-100%                       87%

(Fund PE Less Than Sensex PE, at investment) 
Equity and Related                                           0%-30%
Debt incl. Money Market etc                              0%-20%                          0%
Cash in Hand etc.                                                --                             13%

LOAD:Entry Load: NIL
Exit Load:      For Regular Plan: 1% below 1 Year                 For SIP: 1% below 2 Year

 BETA: 1.02
SHARPE RATIO: 0.41

BENCHMARK: BSE SENSEX
RECURRING EXPENSE (Charges): 2.5%P.A. Of Weekly Average Net Assets

FUND PERFORMANCE: Trailing Return as of 14.06.2010

Period                        Fund               Category                  Nifty                   Sensex
Year-to-Date              1.97 %              2.5 %                   -0.06 %              -0.73 %
1-Week                     1.64 %              2.61 %                   3.25 %                3.32 %
1-Month                    0.55 %              1.19 %                    2.05 %               2.02 %
3-Month                    2.83 %              2.96 %                   1.18 %                1 %
1 Year                     42.13 %            27.17 %                   13.4 %                13.78%
2 Year                     15.04 %            10.41 %                   7.27 %                 6.84 %
3 Year                     15.4 %               8.08 %                   7.62 %                 6.87 %
5 Year                     24.37 %            20.28 %                 19.73 %               20.37 %
Note: Return less than 1-year are absolute and over 1 year is annualized.

FUND PORTFOLIO DETALS:

Only 4 stocks are from NSE Nifty (top 50 companies). Portfolio consists of mainly Mid Cap stocks.
Ratios                                        Fund            Sensex          Nifty           Nifty Mid-Cap
Portfolio P/B Ratio:                3.47              3.30              3.70                 2.44
Portfolio P/E Ratio:               17.11            20.64            21.77                17.39

Top 10 Investments:

Polaris Software Lab                        4.60 %
Axis Bank                                       4.38 %
ONGC                                            4.26 %
Tata Chemicals                               3.44 %
Hindalco Inds.                                 3.21 %
Cadila Healthcare                             3.07 %
Balrampur Chini Mills                         2.77 %
Voltas                                           2.41 %
HPCL                                             2.31 %
Patni Computer Systems                   2.31 %



Sector Wise Asset Allocation:


Energy                                    16.9 %
Financial                                  12.4 %
Technology                              11.7 %
Services                                  7.3 %
Metals                                     6.4 %
Health Care                              6.3 %
FMCG                                      5.8 %
Diversified                                4.6 %
Automobile                               4.0 %
Engineering                              3.6 %
Chemicals                                3.4 %
Communication                         2.9 %
Construction                            1.7 %
Cash & Equivalent             12.9 %
Total                                     100.0 % 

BIRLA SUN LIFE INDIA REFORMS FUND

MUTUAL FUND: An Open Ended Diversified Equity Fund (Mutual Fund)




Investment Theme:
o New Fund would seek to invest in companies that are expected to benefit from the government reforms program.
o These companies would encompass, but not be limited to, engineering, real estate & construction, power, telecom, infrastructure, financial services, Fertilizers, agrochemicals, irrigation, education and select commodity sectors.
o Investments will be pursued in selected sectors based on the Investment team's analysis of business cycles, regulatory reforms, competitive advantage etc.
o Focus on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company and the key earnings drivers.
o The scheme will invest across sectors without any market cap or sectoral bias.
o The scheme shall also undertake Securities lending and Borrowing within the framework as permitted by SEBI.
Recommendation:o ‘Birla Sun Life India Reforms fund’ is a thematic fund and the fund manager has assumed that the existing Diversified Equity Funds has not been taking benefit from the reform.
o The choice of stocks would be limited if fund Focus on the fundamentals of the business, the industry structure, the quality of management, sensitivity to economic factors, the financial strength of the company.
o We may expect overlap of portfolios between this new fund and other existing diversified equity funds.
o It is better to invest in existing good performer Mutual Funds in the current market. We may wait for this new fund to build a track record first.
FUND BRIEF:FACE VALUE: Rs. 10
FUND PLAN: Plan: Regular. SIP available. Option: Growth/ Dividend
FUND OPTION: Growth and Dividend. (Dividend-Payout/ Reinvestment)
RECURRING EXPENSES: 2.5% P.A. of Weekly Average Net Asset
MINIMUM INVESTMENT: Regular: Rs 5,000. SIP monthly: Rs 1000 for 6 months.

ASSETS ALLOCATION:
Type Standard Min-Max
Equity and Related: 65%-100%
Debt/ Money Market etc: 0%-35%

LOAD:
Entry Load: NIL
Exit Load: For Regular Plan: 1% of fund value below 1 Year
For SIP: 1% of fund value below 2 Year

Emerging India Fund

FUND FACTS:• Emerging India Fund (EIF) is an India-focused, sector agnostic Venture Capital Fund.• "IDBI Trusteeship Services Limited" is the trustee of Emerging India Fund.


• Emerging India is managed by ICICI Investment Management Company Limited (IIMCL), a 100% subsidiary of ICICI Bank.
• ICICI Group has nationwide presence across the financial spectrum. The parent company ‘ICICI Bank’ is recognized as top bank for innovations in SME Banking by International Financial Corporation.
• ICICI Group has committed to invest 10% of the total fund corpus (maximum of USD 15 million).


INVESTMENT STRATEGY:
Fund may focus on following sectors: Healthcare, Education, Consumer led Industries, Infrastructure, Power Projects, Logistics, IT & ITES and Outsourcing. Fund will invest in any sector/ corporate as per Growth Drivers Recognized. The Growth indicators are:
• Increasing Consumer Power creating demand for new business.
• Govt.’s focus on Infrastructure, creating opportunities for ancillary infrastructure players. • Emerging Sectors like Logistics, IT and Outsourcing.


GROUP’S PAST PE FUND EXPERIENCE:
ICICI Venture (subsidiary of ICICI Bank) is one of the largest and most successful private equity firms in India with funds under management to the tune of USD 2 billion through India Advantage Fund. ICICI Venture has exposure in almost every sector.
The investment Portfolio of India Advantage Fund includes Samtel Color, TV Today(Aaj Tak), Karvy Stock Broking Ltd, Pantaloon Retails, Welspun India, Centurion Bank of Punjab, Nagarjuna Construction, Naukri.com etc.


FUND ANALYSIS:
Presently PE Funds are focusing on sectors like infrastructure, HealthCare, Education etc. Recently Reliance Private Equity Fund I has invested Rs 120 Crore in Pathways World School.

EIF is promoted by ICICI Group, which has vast experience in project financing/ SMEs financing, is the main advantage of the fund. 10% to 15% of the total fund will be contributed by ICICI Group which shows the seriouness of the group to build faith in the prospective capital contributors. The moderate to high return is expected.The fund can be subscribed.RISK INVOLVE: VC Fund Invest in rapidly growing companies that require a lot of capital or start-up companies. Hold more risk.


FUND DETAILS:
Fund Size: Initial: USD 100 Million
Green Shoe- USD 50 Million
Target Return: 25% IRR per annum
Hurdle Rate: 10% per annum
Min Invest.: Individual=Rs 50 Lac, Domestic Institutional Investors= Rs 5 Crore
Draw Down: 20% at the time of agreement and rest on call.
Management Fee: 2% p.a. of capital commitment/ effective corpus.
Upfront Cost: Upto 2% of the aggregate committed
CARRY: 20% with catch up
Investment Horizon: 7Years
Extension- 1+1 years
Commitment Period: 3 Years from date of final closing

MANAGEMENT TEAM:
Fund will be managed by ICICI Investment Management Company Limited (IIMCL). Mr Vikas Agarwal, Chief investment Officer having 15 years of experience is heading the investment team of 8 experts.


LEGAL COUNSEL: Amarchand & Mangaldas and Suresh A. Shroff  & Company