Going the natural way

FUND FACTS

Offer open: Till 30 January

Scheme type: Open-ended equity

Minimum investment: Rs 5,000 and multiples of Re 1 thereafter; unit price: Rs 10

Loads: Entry load: 2.25%, Exit load: Nil

Options: Growth (growth and bonus) and dividend (reinvestment and payout)

Investor grievances: Milind Nesarikar. Tel: (022) 30414800. Fax: (022) 30414818

FUND STATS

Objective: To generate capital appreciation by investing in companies engaged in the development, production or distribution of natural resources and to generate consistent returns by investing in debt and money market securities.

Benchmark: BSE 200

Fund manager: Ashwani Kumar and Shiv Chanani (overseas investments)

Asset allocation: 65-100% Domestic companies, 0-35% Foreign securities, 0-35% Debt

Comparable existing scheme: None

FUND PROGNOSIS

Idea distiller: India is rich in natural resources and the global natural resources cycle is likely to fuel consumption. The fund wants to be positioned as one that can take advantage of this robust segment.

Fund house report: Reliance MF, the biggest asset management company in India, manages funds worth Rs 80,779 crore (as on 31 December 2007).

Track record:

Returns profile 5/5

Risk profile 4/5

Fund manager report: Performance of fund manager

Returns profile 4/5

Risk profile 5/5

Scheme DNA:

Four fundamentals of the fund scheme:

Unique idea: High
Return possibility: High
Risk: High
Operability/Complexity: High

Investor takeaways

Who should apply: In the long term, there is money in this sector, but invest if you are (a) long-term investor, (b) mature enough to see possible loss in asset value in the initial few years and (c) understand volatility.

Remember: The prices of stocks (e.g. ONGC, RIL, Indian Oil, RNRL) in this segment have hit a significant high and the pace could slacken or even turn negative in the short to medium term affecting the performance of the fund in the initial period.