NFO-Birla Emerging Leader Fund-Series 1 – April 2014
Birla SunLife Mutual Fund launched new fund offer Birla SL Emerging Leader Fund, a closed ended scheme. The NFO Opens for subscription on 25 April 2014 & closes on 30 April 2014. (Closer Date Extended 5 May 2014) No entry load will be applicable for the scheme.
|Scheme Name||Birla SL Emerging Leader Fund -Series 1|
|Fund House||Birla Sunlife Mutual Fund|
|Type||Closed Ended - 3 years|
|Category||Mid Cap & Small Cap|
|Benchmark||S&P BSE Mid Cap Index|
|Option||Growth / Dividend|
|Fund Manager||Mr. Hitesh Zaveri|
|Scheme Name||Birla SL Emerging Leades Fund - Series 1|
|NFO Open||25 April 2014|
|NFO Close||30 April 2014|
|Scheme Type||A Three Year closed ended equity scheme|
|Minimum Application Amount||Rs 5000 and in multiples of Rs 1 thereafter|
|Load Structure||For Purchase during NFO : Entry & Exit - NIL Exit load - NIL, no redemption/repurchase of units shall be allowed prior to the maturity of the scheme|
Cheque Details : “Birla SL Emerging Leader Fund-Series 1 “
Who can Invest
This product is suitable for investors:
- Seeking long term capital appreciation
- With risk appetite of investing in Equities
- Investors willing to take exposure in equity and equity related securities
- To generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities , including equity derivatives, in the Indian market with focus on small & mid cap stocks.
- Quality companies with potential high growth using strong fundamental research processes
- Help to create wealth by investing in the potential Leaders of tomorrow
Stock Selection Idea
The fund will select stocks from within the investment universe based on following criteria
- Visionary Trustworthy management with establish track record
- Significant Business presence in the area of their operations
- Prospects for future growth and scalability
- Financial discipline and returns as measured by ratio like Return on Investment (ROI) & Returns on Equity (ROE)
Small & MidCap stocks are generally varied, uncorrelated to broader markets & not sector specific. Select bottom-up picks in the Small & Mid Cap space offer significant opportunity for re-rating. Besides this, short term opportunities would also be seized, provided they are supported by underlying valuations. As part of the investment strategy, the scheme will book profits at opportune moments to take advantage of the volatility in the market.
Hitesh Zaveri: Mr. Zaveri is a B.Com, M.M.S and Investment management program and Advanced Management Program frm Harvard Business School. He has overall experience of around 10 years in the financial markets. Prior to joining Brila AMC he has worked with ENAM AMC, Edelweiss Capital & KJMC Capital Ltd
Why is it time for the Small & Midcap Theme?
The large caps as suggested by the BSE Sensex haven’t really done much in the last 3 years. The BSE Sensex is slightly above its peak of Nov 2010, but the same is not the case for Midcaps and small caps that are currently trading at a significant discount from Nov 2010 levels. These indices are still trading at a reasonable discount to their historical long term P/E & P/B average.
Historically, we have seen a high correlation between GDP Growth & Earnings growth. With expected recovery in GDP having a positive impact on earnings, the prices are currently supportive of these valuations.
Why Birla SL Emerging Leaders Fund?
The Small & Mid Cap theme is all about stock selection rather than asset allocation. At Birla SunLife, a stock will only be selected from the investment universe if it fits into our core investment philosophy.
Some of the key parameters for stock selection are:
- Sustainable Growth : The fund will buy quality businesses which have a sustainable model and there is a visible opportunity to scale the business.
- High Quality Management : This remains an important criteria for stock selection. Even through a business is sustainable
- Capital Efficiency : The Fund would buy stocks that have superior capital efficiency in term of ROCE, ROE and have completitive Industry dynamics
- Attractive Valuation : Valuations will be one of the most important parameter while deciding on a stock. The fund will adopt a Value investing approach, with a high margin of safety in the endeavour to generate superior returns.