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Bold Move From Bharti AXA


Bharti AXA Equity Fund– NFO Preview
Bharti AXA Mutual Fund is all set to launch its first equity diversified fund, Bharti AXA Equity Fund. The objective of the scheme is to invest in equity and equity derivatives across all market capitalizations. Thus the scheme aims to be a diversified multi-cap fund.

Performance of the Fund Manager:
Mr Prateek Agrawal will be the fund manager of the scheme. He has an experience of over 14 years in research and fund management. He has worked in SBI Capital Market (1994-2004) and ABN AMRO Asset Management (2004 -2007). While working with ABN AMRO Asset Management, he mainly handled equity schemes. Currently he is the Equity head of Bharti AXA Mutual Fund.

Similar Funds:
This fund is Bharti AXA’s first offering in the equity space and that too in diversified category which is the biggest category with 179 funds. After the dream run in 2007 with around 60 per cent return, this category is going through some turbulent period in 2008. The YTD return of the category is -33.25 per cent (Jan-2008 to Aug-2008) a far cry from the last year’s performance.

Opinion:
The AMC, being a new player in the industry, is going all out to launch different funds across categories. Currently the markets are taking a breather after being under heavy weather for most part of the year. The fund house in an attempt to capitalize on this opportunity is bringing a plain vanilla equity fund. But considering so many equity funds with proven track records on offer, how many people would be interested in a new equity fund and that too from an AMC that lacks experience, is to be seen.

AMC Performance:
Bharti AXA Mutual Fund is a relatively new fund house which has brought out only two debt funds before this. The fund house in an attempt to differentiate its products among other mutual fund products has introduced a new facility of ECO Plan with all its schemes. Under this plan, investors investing up to Rs. 2 lakh and who opt to receive all communications in electronic form would get an additional benefit of lower annual recurring charges.

Scheme Details:
Type: Open-Ended Equity Growth Fund
NFO Opens: September 04, 2008
NFO Closes: October 01, 2008-09-02
Plans: Regular Plan,Eco Plan,Institutional Plan
Minimum Investment: Regular Plan - Rs 5000
Eco Plan – Rs 5000
Institutional Plan – Rs 5 crore
Benchmark: S & P CNX Nifty Index
Fund Manager: Mr. Prateek Agrawal
Load Structure:
Entry Load – Investment of less than/up to Rs 2 crore, 2.50 per cent will be charged (Regular and Eco Plan)
Exit Load – For redemption of less than Rs 2 crore, 1 per cent will be charged if investor redeems within six months (Regular and Eco Plan)

If the investor redeems within three months and redemption amount is more than Rs 2 crore and up to Rs 5 crore, 0.25 per cent will be charged (Regular plan).