Birla Sun Life Mutual Fund (BSLMF), one of the leading mutual fund houses in India, has launched an open ended equity scheme—Birla Sun Life India Reforms Fund---that intends to generate capital appreciation by investing in a portfolio of companies that are expected to benefit from the economic reforms, PSU divestment and increased government spending.
A Balasubramanian, CEO, BSLMF, said, “BSL India Reforms Fund will leverage on great growth opportunities for various businesses across sectors of the Indian economy as we believe that reform agenda is secular in nature and would continue for foreseeable long period of time. This belief rests on the fact that government policy evolution is an ongoing process. In turn, this will create wealth for companies and enhance shareholder value. Infact as per the eleventh five year plan ending 2012 , government has committed over Rs 10 lakh crores in four important sectors alone, which are roads, telecom, healthcare and educationâ€.
Balasubramanian further said, “The India Reforms Fund Scheme will be invested in multiple sectors at any point in time, which may be at different stages of reform. Our strategy is to maintain the fund exposure in sectors according to reforms expected, announced or implemented in those sectors at that timeâ€.
“The scheme will invest across sectors without any market cap or sectoral bias i.e. a mix of Midcap & Large cap opportunitiesâ€, Mr Balasubramanian added.
The scheme intends to buy the stock on expectations of the reforms, and hold for the reform story to play out, unless there is a change in view pertaining to the stock/ sector. The scheme would endeavour to remain invested in such sectors to capture the complete up-cycle - from the announcement of reform measures to the time when the reforms are actually implemented and benefit the respective sectors & stocks.
The NFO of units of Rs. 10/- opened for subscriptions on May 10, 2010 and will close on June 9, 2010. Benchmarked against S&P CNX 500 index, the fund offers both growth and dividend options with minimum application amount of Rs 5,000. Residents, Non-Resident Indians (NRIs), Foreign Institutional Investors (FIIs) and Person of Indian Origins (PIOs) are eligible to invest in the scheme on a full repatriation basis.
