|
Pramerica Equity Fund
|
|
|
|
India - Rising star among emerging markets
|
The India Growth Story has been appealing to the world. India is the rising star
among emerging markets. India’s GDP is growing at a healthy growth rate and its
per capita income is also growing by leaps and bounds, thus putting, more money
in the hands of the Indian Investors. It is expected that India’s GDP growth rate
may surpass that of China in the near future.
|
|
|
|
In the last few years, there has been an exponential increase in the investments
made by Foreign Institutional Investors (FIIs) in the Indian markets as compared
to China and other emerging markets.
|
|
Total Foreign Investment (USD Bn) –(FII+FDI)
|
2008
|
2009
|
2010(E)
|
|
China
|
94
|
34
|
36
|
|
India
|
17
|
19
|
30
|
|
|
|
|
Source: CLSA Economics Regional Fact File – 12th Sep 2010
|
|
|
|
Markets@ 20,000: Relatively Attractive
|
|
As compared to recent history, Indian Equity markets are reasonably valued and well
poised for growth.
|
|
Market Indicators
|
Jan 2008
|
Sep 2010
|
|
Sensex
|
20873
|
20045
|
|
Market Capitalization/GDP multiplier
|
1.6x
|
1.2x
|
|
Forward P/E (1 year forward)
|
26.2x
|
18.9x
|
|
Earnings Yield (%) (1 year forward)
|
3.8
|
5.3
|
|
|
|
Source: Bloomberg, Enam Securities, Pramerica Estimates
Since January 2008, even though India’s nominal GDP has grown by around 30% and
earning yields are currently 40% higher, the Sensex is still at similar levels.
This indicates that there is more room for growth. The average Indian Investors,
would certainly like to participate in the India growth story. The question most
often asked is"HOW?"
|
|
|
|
The answer to this lies in a combination of three key factors, namely :
|
- Large Caps
Large Caps are regarded as a proxy of the India Growth Story. Yet, many of the Indian
large caps are still quite small as compared to their counterparts in other emerging
markets. With growing economy and increasing globalization, Indian large caps have
enough room for growth. As of 30th June, 2010 more than 70% of the FII investments
in India have been into large caps. Large Cap stocks account for more than 75% of
BSE’s market capitalization.
- Sector Rotation
The key to making money consistently is picking the right sectors. Right sector
selection decides whether you make or lose big money. Historically, Indian equity
markets have supported the relevance of sector selection.
- Special Situations
The icing on the cake comes from identifying companies which have great value-unlocking
potential.
Presenting Pramerica Equity Fund, a fund that will give you the advantage
of all three factors and help your wealth grow as India grows!
|
|
Pramerica Equity Fund
|
- A Diversified Equity Fund with Large Cap bias.
- Investment Approach
- Sector Rotation (identifying the right sector)
A top down-strategy that involves identifying sectors, which, backed by favorable
economic environment, are likely to outperform the markets.
- Special Situation (identifying hidden values)
A bottom-up strategy that involves identifying companies which have great value-unlocking
potential.
|
|
Who should invest in Pramerica Equity Fund?
|
|
If you believe in the India Growth Story and want to participate in it for the long
term, then Pramerica Equity Fund should be a key part of your portfolio.
|
|
Important Information: Pramerica Equity Fund :Name
of the Scheme: Pramerica Equity Fund. Scheme Classification:
An Open Ended Equity Scheme. Investment Objective:
To achieve long term capital appreciation by investing in an actively managed diversified
portfolio consisting of equity and equity related securities including derivatives,
debt and money market Instruments. Assets Allocation: Equity
& Equity related instruments : 65% to 100%. Debt & Money Market instruments
: 0% to 35%. Terms of issue and sale and redemption of units:The
scheme offers sale and redemption facility at NAV based prices on all business days
during the ongoing offer. NAV of the Scheme will be calculated and disclosed at
the close of every Business Day. Load Structure:
Entry Load: Not Applicable, Exit Load:
@ 2%, If the Units are Redeemed / Switched-out on or before 365 days of allotment;
@ 1%, If the Units are Redeemed / Switched-out after 365 days, but on or before
730 days of allotment; NIL, If the Units are Redeemed / Switched-out after 730 days
of allotment Recurring Expenses: Recurring expenses including
the investment management and advisory fee that can be charged to the Scheme shall
be subject to a percentage limit of average weekly net assets @ 2.5% for the first
100 crore; @ 2.25 %, next Rs. 300 crore; @2.00 % on the next Rs. 300 Crores; and
@ 1.75% on the balance. Copy of SID/SAI and Key Information Memorandum (KIM) can
be obtained from all Investor Services Center of Pramerica Mutual Fund or downloaded
from: www.pramericamf.com. Fund Managers: Ravi Gopalakrishnan
& Mahendra Jajoo.
|
|
|
|
Risk Factors & Disclaimers: All mutual funds
and securities investments are subject to market risks and there can be no assurance
that the objectives of the Schemes will be achieved and the NAV of the funds may
go up or down depending upon the factors and forces affecting the securities markets.
Pramerica Pramerica Equity Fund is only the name of the scheme and does not in any
manner indicate either the quality of the Scheme, the future prospects and returns.
Performance of the Sponsor has no bearing on the expected performance of the mutual
fund or any of its schemes. Past performance of the Sponsor and their Affiliates/AMC/Mutual
Fund & its Scheme(s) does not indicate the future performance of the Scheme(s) and
may not necessarily provide a basis of comparison with other investments. Investment
in Mutual Fund Units involves investment risks such as trading volumes, settlement
risk, liquidity risk, default risk including the possible loss of principal. As
the price / value / interest rates of the securities in which the scheme invests
fluctuate, the value of your investment in the Scheme may go up or down. Investors
are not being offered any guaranteed / assured returns under any scheme of Pramerica
Mutual Fund.
|
|
|
|
Statutory Details: Pramerica Mutual Fund is set up as a
Trust under the Indian Trusts Act, 1882 and registered with SEBI. Sponsor:
Prudential Financial, Inc. of the United States of America [liability restricted
to initial contribution of Rs. 1 Lac towards the corpus of the Mutual Fund]. [Pramerica
is the brand name used by Prudential Financial, Inc. of the United States and its
affiliates in select countries outside of the United States. Prudential Financial,
Inc. (PFI) of the United States is not affiliated in any manner with Prudential
plc, a company incorporated in the United Kingdom.] Trustee:
Pramerica Trustees Private Limited Investment Manager: Pramerica
Asset Managers Private Limited.
|
|
|
|
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, PLEASE READ ALL SCHEME
RELATED DOCUMENTS CAREFULLY.
|