Lotus India AGILE Fund - NFO
We generally do not give updates on mutual funds. However, this new fund from Lotus India AMC just took up my attention. What is so different about it???
It is India’s 1st Quant based Mutual Fund scheme. A quant fund is one where the investing decisions are taken by computer based models which are developed using quantitative techniques. How does this benefit the investor???.
•The investing strategy used is back tested and has a proven track record.
•The buy and sell decisions are made by the computer model and hence it eliminates human and emotional bias of the fund manager.
•It follows a consistent investment strategy and does not deviate from the same resulting in higher long term returns.
Quant fund have been in countries like USA and Australia for quite some time. However, this fund is first of its kind in India. The Lotus India AGILE fund’s returns that are available in the presentation on the link provided below are far superior to other index funds currently in the market. The fund seems to be worth investing in if you are looking to invest in large cap stocks.
Objective of the Fund:
The investment objective of the scheme is to generate capital appreciation by investing in passive portfolio of stocks (equity and equity related instruments) selected from the industry leaders on the basis of a mathematical model.
What is AGILE?
AGILE means Alpha Generated from Industry Leaders Fund. Alpha is the measure of a fund`s performance with respect to the performance of the index against which the fund is benchmarked. Here in case of Lotus India AGILE Fund, alpha refers to the excess returns of the portfolio over the returns of its benchmark index, the S&P CNX Nifty (Nifty/Index).
The presentation and the offer document of the fund are available on the following links:
http://www.lotusindiaamc.com/ContentFiles/10_22_2007_5_50_03_PM_Lotus_India_AGILE_Fund_Presentation.pdf
http://www.lotusindiaamc.com/ContentFiles/10_22_2007_5_46_45_PM_Agile_OD.PDF
The scheme opens for subscription on Oct. 25, 2007 and closes on Nov. 23, 2007. Continuous offer will be open for repurchase on or before Dec. 20, 2007. The units of the scheme will be available at Rs 10 per unit plus applicable entry load during the new fund offer period.
The fund aims to generate capital appreciation by investing in a passive portfolio of stocks selected from industry leaders on the basis of a mathematical model and offers growth, dividend payout and dividend reinvestment options.
The fund will invest in 11 stocks determined by a mathematical model and the portfolio will be reviewed and reset every month. Out of the total corpus, 9 per cent will be invested in each of the 11 stocks and one per cent will be kept in money market instruments.
The benchmark index for the fund is the S&P CNX Nifty.
The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter, and in case of additional purchase the application amount is Rs 1,000 and in multiples of Rs 1 thereafter, and the minimum redemption fee is Rs 1,000 or 100 units.
The entry load is 2.25 per cent where the purchase amount is less than Rs 5 crore, whereas the exit load in case of redemption on or before expiry of six months from the date of allotment is one per cent and if redeemed after six months and on or before the expiry of one year from the date of allotment it is 0.60 per cent.
It is India’s 1st Quant based Mutual Fund scheme. A quant fund is one where the investing decisions are taken by computer based models which are developed using quantitative techniques. How does this benefit the investor???.
•The investing strategy used is back tested and has a proven track record.
•The buy and sell decisions are made by the computer model and hence it eliminates human and emotional bias of the fund manager.
•It follows a consistent investment strategy and does not deviate from the same resulting in higher long term returns.
Quant fund have been in countries like USA and Australia for quite some time. However, this fund is first of its kind in India. The Lotus India AGILE fund’s returns that are available in the presentation on the link provided below are far superior to other index funds currently in the market. The fund seems to be worth investing in if you are looking to invest in large cap stocks.
Objective of the Fund:
The investment objective of the scheme is to generate capital appreciation by investing in passive portfolio of stocks (equity and equity related instruments) selected from the industry leaders on the basis of a mathematical model.
What is AGILE?
AGILE means Alpha Generated from Industry Leaders Fund. Alpha is the measure of a fund`s performance with respect to the performance of the index against which the fund is benchmarked. Here in case of Lotus India AGILE Fund, alpha refers to the excess returns of the portfolio over the returns of its benchmark index, the S&P CNX Nifty (Nifty/Index).
The presentation and the offer document of the fund are available on the following links:
http://www.lotusindiaamc.com/ContentFiles/10_22_2007_5_50_03_PM_Lotus_India_AGILE_Fund_Presentation.pdf
http://www.lotusindiaamc.com/ContentFiles/10_22_2007_5_46_45_PM_Agile_OD.PDF
The scheme opens for subscription on Oct. 25, 2007 and closes on Nov. 23, 2007. Continuous offer will be open for repurchase on or before Dec. 20, 2007. The units of the scheme will be available at Rs 10 per unit plus applicable entry load during the new fund offer period.
The fund aims to generate capital appreciation by investing in a passive portfolio of stocks selected from industry leaders on the basis of a mathematical model and offers growth, dividend payout and dividend reinvestment options.
The fund will invest in 11 stocks determined by a mathematical model and the portfolio will be reviewed and reset every month. Out of the total corpus, 9 per cent will be invested in each of the 11 stocks and one per cent will be kept in money market instruments.
The benchmark index for the fund is the S&P CNX Nifty.
The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter, and in case of additional purchase the application amount is Rs 1,000 and in multiples of Rs 1 thereafter, and the minimum redemption fee is Rs 1,000 or 100 units.
The entry load is 2.25 per cent where the purchase amount is less than Rs 5 crore, whereas the exit load in case of redemption on or before expiry of six months from the date of allotment is one per cent and if redeemed after six months and on or before the expiry of one year from the date of allotment it is 0.60 per cent.
posted by Sensex-Blog Admin at 3:26 AM
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