Peerless MF Launches 2 NFOs

Peerless Funds Management, promoted by The Peerless General Finance India Co. Ltd, has initiated its journey in the mutual fund industry with the launch of two schemes: the Peerless Liquid Fund (open-ended liquid scheme) and Peerless Ultra Short Term Fund (open-ended debt scheme).

Peerless Liquid Fund is the low-risk option and is positioned to meet the needs of those investors who want to deploy their funds for a short period of time with the least amount of risk.

The risk return profile of Peerless Ultra Short Term Fund positions it in between a liquid fund and short
term income fund. The portfolio strategy seeks to increase yield by having a marginally higher maturity and moderately higher credit risk as compared to a liquid fund while maintaining a balance between safety and liquidity.

“Since the objective of the scheme is to generate reasonable returns with the least commensurate risk, the scheme would predominantly invest in money market instruments. As the turnover of the portfolio would be high, given the fact the investors in a liquid fund would deploy their funds for a short period of time, the portfolio would be structured to incorporate high liquidity by the use of cash and cash equivalents,” said Akshay Gupta, CEO of Peerless Funds Management.

Investors have the choice of three plans: Retail, Institutional and Super Institutional Plans.

Two options are on offer: growth and dividend in each plan. The dividend option would provide three sub-options: Daily (re-investment), weekly (payout and reinvestment) and monthly (payout and reinvestment).

The NFO opens on 17th February, 2010 and closes on 18th February, 2010.

The issue comprises units of Rs 10 per unit during the NFO period and at applicable NAV based prices upon re-opening.

The minimum application amount/number of units is as mentioned below:

Retail: Rs 5,000 and in multiples of Re 1/- thereafter

Institutional: Rs 1 crore and in multiples of Re 1/- thereafter

Super Institutional: Rs 5 crore and in multiples of Re 1/- thereafter

Source: http://new.valueresearchonline.com/story/h2_storyView.asp?str=101254

Dividend in Principal Services Industries Fund

Principal AMC proposing to declare a Dividend in Principal Services Industries Fund.

Dividend Rate – 15% (Rs 1.50 per unit)
Record Date – 22nd February, 2010 (Monday)

Principal Services Industries Fund has been performing well and has been able to capture the recent market rally. The scheme has delivered CAGR return of around 81% since last 1 year as compared to 67% by benchmark CNX Service Sector Index as on January 30, 2010.

What Worked For them:
Media: Though the valuations were not cheap, we added Media stocks due to the strong underlying growth which has been proven in past few quarters.

IT: We have added the IT stocks when the valuation for the sector were not very favorable due to the concerns on the overall business environment for these companies (Specially US)

Financial: Good stock selection within the sector has helped us; especially this sector has a very large inventible universe

What didn’t for them
Utility: Defensive character of the sector has led to relative underperformance in the recent rally over the past years.

Telecom: The sharp intensification of price war in this sector in past few months has led to concerns on the profit margins going forward

IDFC Fixed Maturity Plan – Half Yearly Series 9 Floats On

IDFC Mutual Fund has launched a new fund named as IDFC Fixed Maturity Plan – Half Yearly Series 9, a close ended income scheme. It offers one plan for the investors i.e. Plan A. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue is open for subscription from 17 February and closes on 22 February 2010.

The investment objective of the Scheme is to seek to generate income by investing in a portfolio of debt and money market instruments maturing before the maturity of the scheme.

The tenure of the scheme is six months and it shall mature on 23 August 2010.

The plan under the scheme offers growth and dividend option.

The scheme will allocate up to 100% of assets in debt and money market instruments with low to medium risk profile. Investment in securitized debt shall be up to 50% of net assets of the plan.

Entry and exit load charge will be nil. The units are proposed to be listed on the NSE.

The minimum application under the Plan A is Rs 10000 in multiples of Re. 1 thereafter.

The fund seeks to collect a minimum subscription amount of Rs 1 crore under the scheme during the NFO period.

The scheme's performance will be benchmarked against Crisil Composite Bond Fund Index and will be managed by Mr. Anupam Joshi.

Source: http://www.apollosindhoori.cmlinks.com/MutualFund/MFSnapShot.aspx?opt=9&SecId=10&SubSecId=22,24