New Fund - HDFC Mid-Cap Opportunities



HDFC has come out with its new fund named Mid-Cap Opportunities fund with aim of investing in mid and small cap compnies.

The equity component of the portfolio will range from 75% to 100%. Out of this, small-caps will form a minimum of 5% and a maximum of 15% of the portfolio while mid-caps will be in the 70%-95% range.

Equity and equity related securities other than the above will be in the 0%-25% range.

Debt and money market securities will be in the 0%-25% range.

Investment Strategy

Fundamentally Strong Businesses

• 
  Invest in Fundamentally strong businesses having predictable cash flows and sustainable long-term competitive advantages
• 
  Create a portfolio of ‘growth’ and ‘value’ based on their discount to intrinsic or private market value
• 
  Strong, High Integrity Management Teams
  Invest in businesses run by strong management teams with proven track records

Risk Management

Small and Mid-Cap companies carry higher risk than large cap companies, particularly over the short and medium term. The Scheme endeavours to control risk by adopting following investment strategy:

Maximum exposure to single small and mid-cap company to be restricted to 10% of net assets
Number of stocks in the portfolio to be at least 25

The investment in Small Cap to be restricted to 15% of net assets
The Scheme permits investments in companies other than small and mid-cap companies up to 25% of net assets

Due diligence – regular company visits and financial analysis

WHY CLOSE – ENDED FUND?

• 
  Mid and Small-Cap companies may take time to mature, therefore there is a need to remain invested for a longer period of time
• 
  Flexibility to develop core portfolio with longer time horizon to reap full benefits of investments as there is no pressure to invest/divest in hurry
• Helps take advantage of volatility

PRODUCT FEATURES

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  Liquidity – The Scheme will offer for redemption/switch out of units on an ongoing basis at quarterly intervals at NAV based prices. The Redemption/Switch-out will be available only during the specified Redemption Period i.e. 15th day (or immediately succeeding business day if that day is not a business day) immediately after end of each calendar quarter
• 
  Options – Growth and Dividend (with Payout and reinvestment) options. Dividend reinvestment facility will be available only after the scheme is converted into an open-ended scheme
• 
  Application Amount – Minimum of Rs 5,000 and in multiples of Rs 1,000 thereafter

Snapshot

Scheme: Close-ended equity scheme

Fund opened: May 7

Options: Growth, Dividend Option with payout facility only

Entry load: Nil

Exit load: Nil

Minimum application amount: Rs 5,000Fund Managers: Chirag Setalvad, Anand Laddha (for foreign securities)

Hot Stocks for quick 5-10% gains

Here is the pick of the few stocks which are going to give good five to ten percent return in a week time.

Hotel Leela ( cmp 57.55 )
Ansal Housing ( cmp 266 )
Dabur ( cmp 91.75 )
Marico ( cmp 58 )
Berger Paints ( cmp 42.5 )

Invest in these stocks and wait for the return and dont get in hurry to sell them these are fundamentally good stock and sell them if you get the return even in a day or two and then again wait for the next update here on this site.

Bajaj Auto Demerger Approved

Auto giant Bajaj Auto's board on Thursday approved a demerger scheme, splitting group into three separate entities with the creation of two new companies.

Under the proposed scheme, effective from March 31, 2007, Bajaj Auto Ltd's various businesses including auto manufacturing and other strategic businesses such as wind energy, insurance and financial services, would be demerged into two newly incorporated subsidiaries -- Bajaj Holdings and Investment Ltd (BHIL) and Bajaj Finserv Ltd (BFL).

The manufacturing business would vest in BHIL and other strategic businesses would vest in BFL, the company informed the BSE.

After the demerger, for each share of Bajaj Auto, the shareholders would continue to hold one share of the company with face value of Rs 10 and would also be allotted one BHIL share of Rs 10 face value and one BFL share of Rs 5 face value.

As part of the restructuring, BHIL would be renamed ''Bajaj Auto Ltd'' and the existing Bajaj Auto Ltd would be renamed as ''Bajaj Holdings and Investment Ltd''.

The scheme, approved by the board, is subject to approvals as may be required including that of the stock exchanges, Bombay High Court, and shareholders of the company. (source-thehindubusinessline)