Peerless Equity Fund (PEF)

An Open ended Multicap Diversified Equity Scheme

Summary

Type	Open-ended Equity: Diversified	Benchmark Index	S&P CNX Nifty
Min. Investment Add. Investment	1,000 In the multiples of 1 SIP: Min 500 for 12 month SIP	Face Value	10 per unit
Entry Load	Nil	Exit Load *	1% *
Issue Opens	September 7, 2011	Issue Closes	September 21, 2011

** An exit load of 1.0% will be charged if redeemed/switched out within 1 year from the date of allotment of units. After that exit load is nil.

Investment Objective*

The primary investment objective of the scheme is to generate long term capital appreciation by investing in an actively managed portfolio predominantly consisting of Equity & equity related securities diversified over various sectors.

*Source: Scheme Information Document

Is this fund for you?

New fund offer launch comes at the time when stock markets across the globe are reeling under pressure. Europe Sovereign debt crisis, growing concerns about US economy and cooling domestic economy are dampening the investor sentiment. Overall demand for risk assets is drying up.

Peerless Mutual Fund is relatively a new player to the mutual fund business. Peerless Equity Fund (PEF) is the fund house’s maiden pure equity fund and overall sixth fund to be launched. Prior to PEF, the fund has launched 3 debt and money market funds 1 multi asset hybrid fund and 1 debt oriented hybrid fund.

PEF is a typical diversified equity fund with no bias towards any market capitalisation, thus following a multi-cap strategy. However, it will also look out for opportunities to invest in stocks across market segments (large, mid, small) and sectors.

From the fund house perspective, Peerless Mutual Fund follows a blend style of investing. It uses top down approach to identify themes and sectors with high growth potential over medium to long term and then by using bottom-up approach, stocks are shortlisted for portfolio construction. PEF has various risk management parameters into place to deal with various risks associated with investing.

Portfolio Strategy

As stated by the fund house, it will hold a well diversified portfolio of equities. It may also invest in derivatives up to 50% of the net assets of the scheme. However use of derivatives might not be restricted to index futures/options only. In other words, it can also take exposure to stock specific derivative contracts. The fund is benchmarked against S&P CNX Nifty.

Asset Class	Allocation Range
Equity and equity related securities	80%-100%
Debt and money market Instruments	0%-20%

Fund Manager Profile

Mr. Kaushik Dani- Fund Manager and Head - Equity, is a Commerce Graduate and holds an MBA (Finance). He has over 14 years of work experience in the equity markets. Prior to joining Peerless Mutual Fund, he has worked with K.R. Choksey shares and securities as an equity fund manager and head PMS and has also been associated with broking companies such Share Khan, SG Asia Securities and Motilal Oswal Securities. He has also worked with Birla Sun Life AMC.

Mr. Ganti N Murthy – Fund Manager and Head Fixed Income – is a Science Grduate (Honours) and also holds a Masters in Financial Management. He has over 18 years of experience in fixed income and debt investment with reputed fund houses. He has worked as senior fund manager with SBI mutual fund for 5 years. He was associated with Cholamandalam mutual fund and also with UTI.

Fund Outlook

Given that the fund adopts a no sector or market cap bias approach for investing; it is theoretically well placed to benefit from the investment opportunities across the board. While investments in equity funds are considered to be high risk – high return investment proposition, the flexibility given to the fund manager to take 50% exposure in derivatives may result in higher risks for the investors if the conviction of the fund manager goes wrong.

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Comments
metmar@wp.pl Sep 28, 2011 This article achieved exactly what I wanted it to achieve.
1355535574@qq.com Sep 29, 2011 Hey, that's the graeetst! So with ll this brain power AWHFY?
nabu-wedel@gmx.de Sep 29, 2011 Informatory is power

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