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The best of all worlds


OptiMix has come out with a new Fund of Funds, this one targeted at the equity investor. The OptiMix Equity Multi Manager FoF Scheme is a three-year closed ended fund of funds. Launched on October 26, 2006, it will be open for subscription till November 20, 2006.

The logic is hard to beat. OptiMix claims that it is difficult for one fund to maintain a top quartile performance over long periods of time. And different funds behave differently under various market conditions. A fund of fund seeks to eliminate these issues by giving access to the best performers through one scheme. By investing in the best of mutual funds and having the flexibility of market capitalisation positioning, it is in a position to deliver superior returns and consistent performance.

According to their data, in the current market, the variance between the best and worst equity funds is 60 per cent. And, you, as an investor may not park your money with the best. Here the Fund of Funds tends to reduce this variance by investing only in the top performers.

Just like any equity fund, investors have the option of growth and dividend schemes.

The fund of funds will invest in equity funds (65 - 100 per cent), debt / liquid / money market funds (maximum 35 per cent), and money market securities (maximum 10 per cent). The equity funds selected will comprise of diversified investment styles.

Snapshot
Type of fund: Close-ended Fund of Funds NFO dates: October 26 - November 20, 2006 Benchmark: S&P CNX Nifty Loads: No entry load. For redemption or repurchase, the proportionate unamortised expenses shall be recovered. Cost of unit during NFO: Rs 10 Minimum investment amount: Rs 5,000