Sunday, April 3, 2011

Sundaram CPOF Details

Reason 1 for Investment:

Reasons to invest in the fund
It is a fund that aims for deposit plus returns without losing sight of capital protection orientation ( * More than interest rate on 3 year fixed deposit )

Fixed deposits may offer principal protection but the returns are often low they barely keep up with inflation. Equity investments offer high returns but pose a greater risk to capital. Capital protection oriented funds offer capital protection orientation and capital gain through a mix of debt and equity in the portfolio

Capital Portection Orientation : Endeavors to preserve capital by investing sufficient ( about 80% ) in fixed-income securities so that,with the interest, it grows back to your initial capital value over a 3 year period. These investments will be made only in the highest rate (AAA) papers and in Government Securities.They will be held until their date of maturity so that even if interest rate drops in the next three years it won't affect the scheme's objectives.
Capital Gain : Generates capital appreciation by investing a part of the funds ( up to 20% ) in equity. The equity portion will be invested in stock forming part of the S&P CNX 500 Index.However the equity portfolio will sport a large cap bais.
Highest CRISIL rating AAA(so). This rating indicates the highest degree of certainty regarding timely payment of face value of the investment to investors.
If you are a Corporate Investor or a High Net-worth Individual you will find the tax efficiency of this fund attractive as gains will be taxed as long-tterm capital gains (provided the units are redeemed at maturity ); this enhances the level of post-tax returns on any wealth generated by the fund.
If you are an experienced equity investor the profits you have booked in the equity market and sitting idle in bank accounts is better invested in this fund; it could generate further gains, while protecting your capital.

If you are new to equity investment this is an excellent avenue to participate in the equity market with the comfort of capital protection - especially suitable for first-time investors and those with a conservative mindset.

Reason 2 for Investment:


Friday, April 1, 2011

Sundaram NFO Capital Protection Oriented Fund Series 3

Submit this form duly filled with cheque and KYC at any point of CAMS or SUNDARAM MUTUAL FUND in your city or call us to collect. Last day for investment is 11/04/2011.