Birla Sun Life International Equity Fund

Now it is the turn of the Birla AMC to come out with a mutual find that targers international destinations.

This is slightly different from the ones that have been launched by other AMCs as the other funds that have been launched in the recent past still have a significant proprtion of the funds that will be invested in the Indian stock market.

However, this fund has a scheme where a very high propotion of the funds will be invested abroad.

The reason why many of the funds that intend to invest overseas still invest a high proportion in India is to get the tax benefits as defined by the Income Tax rules in India where by tax on long term gains are exmept from tax and the short term gains are taxed at 10% of the gains.

This fund is an Open-End, Equity Diversified Scheme with two types of plans - Plan A and Plan B

Investment Objective
Plan A: The plan would exclusively invest in international stocks.

Plan B: The plan would invest in a blend of domestic and international stocks. It would have the flexibility to invest in stocks across different market capitalisation.

The international investments for both the plans would aim to create a portfolio that is diversified geographically, to take benefit of low correlation between various countries, and to create a portfolio of high quality - high growth stocks.

The domestic portion of the portfolio would provide a strong base to the scheme and the international portion would aim towards reducing the risk through diversification and contribute to returns.

Asset Allocation
Plan A: Around 90-100 % of investments would be allocated to foreign equity and equity-related instruments. Fixed income securities and money market component in the portfolio would be around 0 - 10 %.

Plan B: Around 90-100 % of investments would be allocated to equity and equity-related instruments out of which 65 to 75% would be in Indian securities and 25 to 35% would be in foreign securities. Fixed income securities and money market component in the portfolio would be around 0 - 10 %.

Fund Opens: September 17, 2007
Fund Closes: October 16, 2007
Face Value: Rs 10
Investment Options: Growth, Dividend Reinvestment, Payout and Sweep Facility

Entry Load: An entry load of 2.50% would be charged for investment upto 5 crores.

Exit Load: An exit load of 1% would be charged for investment less than 5 crores if redeemed within six months from the date of allotment.

Minimum Investment Amount: Rs 5000

Benchmark Index
Plan A: S&P Global 1200
Plan B: It would be benchmarked against a customised benchmark created using BSE 200 to the extent of 65% of portfolio and S&P Global 1200 to the extent of 35% of portfolio

Fidelity launches Fidelity India Growth Fund

In addition to the Fidelity international opportunities fund, it now launches a new new open-ended equity fund called Fidelity India Growth Fund. The fund would primarily invest in growth oriented companies in Indian and International markets.

The scheme seeks to invest in the best opportunities in the Indian and international markets, without any sector or cap bias. The fund managers will follow bottom up stock picking strategy. The focus will be on companies that offer best value relative to their respective long-term growth prospects, returns in capital and management quality.

However, while investing in the international markets, the fund managers expect to identify such investments which could provide opportunity to participate in the Indian economy. For example - Indian businesses that are listed in international markets or international companies that participate in the Indian economy.

Around 80-100 % of investments would be allocated to equity and equity-related instruments. Money market component in the portfolio would be around 0 - 20 per cent.

Snapshot
Face Value: Rs 10
Type of Fund: Open- End
Options: Growth, Dividend Reinvestment and Payout
Minimum Investment: Rs 5000
Entry Load: An entry load of 2.25% would be charged for investment less than 5 crores.
Exit Load: An exit load of 1% would be charged if the investment is redeemed with in six months from the date of allotment.
Offer Opens: September 3, 2007
Offer Closes: September 26, 2007

ICICI Pru Indo Asia Equity Fund

Inline with many Mutual Fund houses that have brought out funds that aim to invest in equities outside of India, primarily in SE Asia and China, ICICI Prudential also has come out with an open-ended fund named ICICI Prudential Indo Asia Equity Fund.

The scheme endeavors to generate long term capital appreciation by investing in equity, equity related securities of companies, which are incorporated or have their area of primary activity, in the Asia pacific region. In the beginning the scheme will be investing in share classes of International Opportunity Fund - Asian equity fund and thereafter they may choose to make investment in listed shares, securities in Asia.

The fund manager shall broadly analyse the global and domestic economy, industry trends and business cycles. He will invest in companies that benefit from larger industry and sectoral trends, using bottom-up analysis, quality of management in terms of corporate governance, transparency in reporting, commitment to minority shareholders and a certain minimum size of the company before considering any company as a prospective investment.

Between 65% to 100% of the portfolio allocation will be in equities and equity-linked instruments. Debt will comprise 0% to 35% of the portfolio.

Highlights
Issue Opens: August 23, 2007
Issue Closes: September 21, 2007
Investment Options: Growth, Dividend payout and reinvestment.
Plans: Retail and Institutional
Minimum Investment: Rs 5000(retail) and Rs 5 crores (institutional)
Face Value: Rs 10
Entry Load: Entry load of 2.25% would be charged for investment less than 5 crores.
Exit Load: Exit load of 1% would be charged for investment less than 5 crores if redeemed before 6 months from the date of allotment.

The above load structure is applicable only for the retail plan. The fund would not charge any load for the institutional plan.

Benchmark Index: The benchmark would constitute 65% of S&P CNX Nifty and 35% of MSCI AC Far East Free ex - Japan Index.

This is a good scheme along with other similar finds that were launched for people to diversy their holdings outside of India and such funds gain popularity because of the liberalization where RBI allowed Indians to invest abroad to the extent of USD 100,000 per annum.