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PRESS
RELEASE
9
April 2007
Birla
Sun Life MF launches Birla Sun Life Long Term Advantage Fund
- Series I
Birla
Sun Life Mutual Fund, one of India's leading mutual funds,
today announced the launch of Birla Sun Life Long Term Advantage
Fund - Series 1 (BSLAF
- Series 1) .
BSLAF
- Series 1 is a three-year, closed-end equity fund which aims
at generating consistent long-term capital appreciation by
investing predominantly in equity and equity-related securities
of small and mid cap companies. The performance of the fund
would be benchmarked against the BSE 500 Index.
"There
are a lot of opportunities in the small and mid cap segment
of our markets. A fund dedicated to this segment would have
the potential of generating superior returns over the next
three years," said Mr. Mukul Gupta, CEO, Birla Sunlife
Mutual Fund. "Mid and small cap companies now quote at
a substantial discount to the large cap companies and hence
offer better risk-to-reward/investment opportunities. The
closed-end nature of the fund allows fund managers the flexibility
to focus on long-term wealth creation, without unduly worrying
about short-term liquidity concerns," he said.
This fund
will invest in a portfolio of attractively priced small and
mid cap stocks that are expected to post attractive growth
in the next few years. BSLAF - Series 1, through active management,
seeks to construct a portfolio of high-growth stocks with
an endeavour to outperform its benchmark index.
When one
is invested in a long-term three-year closed-end fund, the
intervening volatility of the stock markets does not impact
as long as the markets perform over the three-year horizon.
Moreover, in an upward trending market, investing in a closed-end
fund prevents one from encashing too early and thereby miss
the larger rally.
Investing
in equities has always proved beneficial in the long term.
Analysis has also proved that the probabilities of earning
superior returns are higher for long-term equity investments.
An investment
for any three-year period in the last 27 years of the Sensex's
existence has generated positive returns, 80 per cent of the
times. On the other hand, investments for a one-year period
would have generated positive return only 63 per cent of the
times.
Illustration
of the Sensex performance in three-year periods
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| Click
on graph for larger view |
(Source:
Internal)
With a large
team of equity analysts and fund managers and long experience
of over 12 years in equity funds management, Birla Mutual Fund
is ideally placed to manage a long term closed-end equity fund.
About
Birla Sun Life Asset Management Company Limited
Birla Sun Life Asset Management Company Ltd., since its inception
in October 1994, has emerged as one of India's leading AMCs
with over Rs.19,300 crore of assets under management and an
investor base of over 11 lakh (as on 31 March 2007). It offers
a range of comprehensive investment options, which includes
diversified and sector specific equity schemes, hybrid funds
and a wide range of debt and treasury products.
For more information please contact:
Mr. Raghvendra Nath
Vice president, marketing and strategy
Tel: 91-22-6692 8058 (Direct), 6692 8000 (Board)
Mobile: 9820210632
email: raghvendranath@birlasunlife.com
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