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Friday, May 13, 2016

Mutual Fund Investments Risk Factors..!


 Mutual Fund Investments are subject to market risks.

Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing.

Copy of the SAI, SID, key information memorandum and application form may also be obtained from the offices / investor service centres of Sundaram BNP Paribas Asset Management, its distributors and at www.sundarambnpparibas.in.

Terms of Issue: Rs. 10 per unit during the NFO period and at the NAV based prices for sale/ redemption and publication of NAV on all business days, after the allotment on ongoing basis, which shall be not later than 30 days from the closure of subscription of the New Fund Offer.

Fund Facts:

Name: Sundaram BNP Paribas Select Thematic Funds PSU Opportunities 

Type: an open-end equity scheme; Investment Objective: Seek capital appreciation by investing in equity and equity-related securities of public sector companies to the extent of at least 65%. Public Sector Undertaking (PSU) means a Company(ies) where the Central / State Government(s) has majority shareholding or management control or has powers to appoint majority of directors.

Asset Allocation:

Equity and equity-related instruments in the targeted theme: 65%-100% Equity and equity-related instruments outside the targeted theme: 0%-35% Fixed -income and money-market instruments: up to 35%. 

Investment in Equity & equity-related Instruments other than the targeted sector/theme will be in Indian securities and large-cap stocks from S&P CNX Nifty. Exposure to securitised debt shall not exceed 50% of the limit indicated for fixed income and money market instruments. Investment in overseas securities shall be up to 35% of the net assets of the scheme. Exposure to derivatives shall be up to 50% of the net assets of the scheme.

Benchmark:

CNX PSE Index. Minimum Investment Amount: Rs 5,000. Entry load: There is no entry load. Exit Load: 1% if redeemed/switched out within 12 months from the date of allotment. There is no exit load for bonus units and dividend re-investment.

Scheme-Specific Risk Factors:
Geo-political developments. As the schemes will invest in the instruments of public sector companies, it will be affected by the government policies on PSU. As a thematic fund, there will be concentration risk compared to a diversified fund. For any overseas investments in the equity funds, country risk, currency risk and geopolitical risk, to name a few The income-tax concessions for the capital gains arising from the transfer of the units of the Scheme as well as for the dividend distribution tax at the Scheme level are contingent upon the Scheme qualifying as an equity-oriented fund under the Income Tax Act, by investing more than 65% of the funds of the Scheme in the equities of Indian Companies.

Derivatives:

The Scheme may use techniques such as interest rate swaps, options on interest rates, futures and forward rate agreement and other derivative instruments that are / may be permitted under SEBI/RBI Regulation. These techniques and instruments, if imperfectly used, have the risk of the Scheme incurring losses due to mismatches, particularly in a volatile market.

General Risk Factors:
All mutual funds and securities investments are subject to market risks, and there can be no assurance or guarantee that fund's objectives will be achieved. NAV may go up or down, depending on the factors and forces affecting the securities market. Main types are market risk, liquidity risk, credit risk and systemic risks. At times, liquidity of investments may be impaired.
There is uncertainty of dividend distribution and risk of capital loss. Past performance of the Sponsor/Asset Management Company/Fund does not indicate the future performance. Investors in the schemes are not being offered any guaranteed or indicated returns. Sundaram BNP Paribas Select Thematic Funds PSU Opportunities only the name of the scheme and does not in any manner indicate either quality or future prospects and returns.

Statutory: Mutual Fund:

Sundaram BNP Paribas Mutual Fund is a trust under Indian Trusts Act, 1882 Sponsors. Liability for sponsors is limited to Rs 1 lakh.

Sponsors: Sundaram Finance Ltd & BNP Paribas Asset Management.

Investment Manager: Sundaram BNP Paribas Asset Management Company Ltd.

Trustee: Sundaram BNP Paribas Trustee Company Ltd.


Mutual Fund Investments Risk Factors..! Reviewed by S Chitra on May 13, 2016 Rating: 5   Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Informati...

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