50% infra play, 50% PSU play
Birla Sun life Mutual Fund has launched India Reforms Fund which would primarily invest in companies expected to benefit from Reforms initiated by Govt. The scheme will invest across sectors without any market cap or sectoral bias; i.e., a mix of midcap and large-cap opportunities.
Since Reforms are actively interlinked with infrastructure growth, the Fund would act as a proxy to infrastructure play too. Only that this Fund would have more sectors than infrastructure fund would have. Ex: Infrastructure Funds do not buy Fertilizer stocks, this Birla sun life India Reforms Fund would.
Thus, this Fund is a 50% Infra proxy.
Since Reforms make maximum impact on PSUs and mostly initiated by PSU divestments, this Birla Sun life India Reforms Fund would also act as a proxy to PSU play too.
Thus, this Fund is a 50% PSU proxy.
COMMENTS AND RECOMMENDATION:
The reform story is a slow process which will take quite a long time to show results. Thus, this Fund is for investors who are willing to wait for the fruits.
The Fund is managed by Ankit Sancheti who has a good tract record in managing Birla Sunlife Divident Yield Plus Fund and Birla Sunlife Basic Industries Fund.
Though on the face of it, the Fund looks attractive, it should be noted it is always better to invest in a Diversified Fund which would reduce volatility and risk associated with a Thematic Fund like the Birla Sun life
Reforms Fund. India
Moreover, it is no secret that a Fund Manager of a Diversified Fund would look at Reforms stocks too, if they look attractive, so a Diversified would always be a better option than a pure thematic fund like Birla sunlife India Reforms Fund because a downturn or negative news on reforms would be harsh on stocks associated with reforms and thus funds like these would fall the hardest.
Those who are brave enough to ride out the volatility associated with a Theme Fund and bullish on “Reforms” as a story, can look at the fund, preferably through SIPs.
Best of luck,
Also visit http://equityadvise.blogspot.com
sory to write to you like this, but i could not find the contact form. I really like your blog and i was wondering if you would maybe like a link exchange with my website www.makemoneyinstocks.net . My site has many good articles and gets over 40.000 different visitors per month. I think we would both benefit out of this exchange alot. We would get higher position in search engines and many new visitors from each others investment sites.
Well please let me know on email@example.com . I would really like a link exchange with your blog (I like it alot).
Thank you in advance for your reply.
There are famous websites on the Web known for collecting penny stock information on a daily basis. Stock treads is one of those websites. The site outlines the Penny Stocks with more than average buying volume. It also promotes a number of securities with odds of making big profits. Watching the daily trades analyzed by the site is very imperative.ReplyDelete
Your article is very good! Helpful to me, I have learned a lot of things, very grateful! make money online is a good idea.ReplyDelete