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Shinsei Ventures Into Equity

The newest member of the fund industry has showcased an equity NFO

Shinsei, the newest asset management company (AMC) on the mutual fund block, has come out with its first maiden equity fund offer – Shinsei Industry Leaders Fund.

The fund seeks to invest in businesses that are leaders across industries based on three factors – market share, profitability and growth.

The portfolio will be constructed with stocks of about 25–30 companies which have shown consistent outperformance. Leaders will be tracked across sectors and therefore even mid-cap companies will come into consideration. The fund will have a blend of large-cap and mid-cap stocks.

The fund may keep about 35 per cent of its assets in cash and fixed income instruments.

Fund Manager

David Pezarkar, B.A. (Economics) and M.M.S. (Finance), is the designated fund manager. In his 15 years of experience in the field of research, analysis and fund management, he has worked with SBI Fund Management and UTI Mutual Fund along with some brokerage houses and life insurance companies.

Fund Family

Sponsored by Shinsei Bank, Japan, Shinsei Mutual Fund started in February 2009. Shinsei Bank holds 75 per cent stake in Shinsei Asset Management, the manager to the mutual fund. Till now, it has launched two other funds in the debt category – Shinsei Liquid Fund and Shinsei PSU Bond Fund.

Basic Details

Type: Open-End Diversified Equity Fund
NFO Opens: July 27, 2009
NFO Closes: August 25, 2009
Plan / Options: Growth and Dividend (reinvestment and payout) options.
Minimum Application Amount: Rs. 5,000/-
Minimum Additional Purchase / Redemptions: Rs 1,000/-
Minimum SIP Investment: Rs 1,000/-
Benchmark: BSE 100
Load Structure (During NFO):
Entry Load: For investments of less than Rs 2 crore, 2.25 per cent
Exit Load: 1 per cent for redemptions within 6 months; 0.50 per cent for redemptions after 6 months, but within 1 year. For SIP / STP, 1.50 per cent if redeemed within 2 years.
Annual Recurring Expense (maximum): 2.50 per cent (including Investment Management fee of 1.25 per cent).