Birla Sun Life Capital Protection Orientation Fund Series-14 a close ended capital protection oriented scheme that seeks to provide capital appreciation linked to equity market with downside protection at the end of tenure.
NFO Opens 26 November 2012
closes on 10 December 2012.
Tenure 1093 days.
Asset Allocation 80% to 100% Debt Securities
0% to 20% Option Premium
Option/ Plan Growth
Min Investment Amt 5000
Load Structure Entry Load - Nil Exit Load - Nil
An Illustration for Capital Protection
Capital Protection : Assume an initial investment of Rs.100 for 1093 days. Assuming interest rate of similar tenure AAA rated paper as 8-85%, one would need to deploy about Rs. 84.83 in a AAA rated debt & money market instrument so that is grow to Rs. 100 at the end of 1093 days.
Balance amount Rs. 15 invested in Option
Now your invested is protected If you invested Rs.100 then you get back Rs.100 & what is profit / interest received in this scheme
Situation 1 :
Nifty at the time of expiry above 5000 say at 7000
(market appriciate 40%)
Debt amount Rs. 100
(capital protected)
Option profit Rs. 30
-----------
After 1093 day 130
your valuation
Situation 2 :
Nifty at the time of expiry is below or equal to 5000
Debt amount Rs. 100
(capital protected)
Option profit Rs. 000
-----------
After 1093 day 100
your valuation
This product yield around 9.50% if sensex close +21000 @ time of maturity.
Capital protection fund delivery return in the range of 0% to 10%
No way to invest in this type of fund. It's not for retail investor product.
टिप्पणियाँ
एक टिप्पणी भेजें