Taurus Mutual Fund launches 'Taurus MIP Advantage'

An Open Ended Income Scheme with the difference of Gold-edge

Taurus Mutual Fund announced the launch of Taurus  MIP Advantage, an open-ended income scheme with multi-level diversification, exposure through 3 major asset classes, viz. Debt, Equity and Gold (through Gold ETFs). The fund will be jointly managed by Mr. Rahul Pal (Debt) and Mr. Sadanand Shetty (Equity & Gold ETFs). The NFO opens on 29 June, 2010 and closes on 23 July, 2010.

The Taurus MIP Advantage will provide diversification in multiple assets with very low co-relation that ensures stability and potential to deliver superior risk adjusted returns. Historically, Gold has negative co-relation with equities and has been considered to be a hedge against inflation and is an ideal diversifier for any portfolio. This fund us suitable for all market conditions as the fund managers have flexibility to rebalance the portfolio in varying market scenarios.

Commenting on the launch of Taurus MIP Advantage, Mr. Waqar Naqvi, CEO Taurus MF said “With an outstanding performance from our focused funds that are managed by seasoned fund managers on both Equity and Fixed Income sides of business, across various time frames, coupled with a sound risk management process in place, we at Taurus Mutual Fund feel it is an appropriate time to expand our product basket with a fund that will allow investors to stay invested over the long-term and benefit from a blend of the three most attractive asset classes in a single portfolio - Debt, Equity and Gold. Each of these asset classes have their strengths and potential to generate good returns for investors in dynamic market conditions.”

Taurus MIP Advantage includes exposure to Gold, through investment into Gold ETF, which helps preserve the purchasing power. On the other side, Debt will allow income generation and provides overall stability, whereas Equity will bring in the kickers to achieve higher returns.

Investment Objective: To generate regular income through a portfolio of fixed income securities, Gold ETFs and equity & equity related instruments.

Benefits of Taurus MIP Advantage

• Diversification in multiple assets with very low co-relation that ensures stability and potential to deliver superior risk adjusted return
• Historically gold has negative co-relation with equities and has been considered to be a hedge against inflation and is an ideal diversifier for any portfolio
• Suitable for all market conditions as Fund Managers have flexibility to rebalance the portfolio in varying market scenarios
• Provides  flexibility of regular income / Capital appreciation
• More tax efficient compared to other fixed income instruments. Dividend is tax free while long term capital gains is taxed at 10% (plus education cess) without indexation benefit or 20% (plus education cess) with indexation benefit. The taxation rates may undergo changes as & when proposals of DTC get implemented.

Who should invest in Taurus MIP Advantage?

• Investors looking to have exposure to 3 asset classes as part of asset re-allocation / diversification
• Investors not satisfied with low returns of fixed income products (in a rising interest rate scenario) yet not willing to take high risk
• Investors who have so far not looked at Gold as an investment option (except buying gold in the form of jewellery)
• Investors looking to regular income flows by making a lump sum investment
• Institutions/ Corporates willing to enhance their treasury return with a little additional risk
• Addresses the needs of a  retail investor who wants gold exposure but does not have a demat account

Key Features:

NFO Opens – 29th June, 2010
NFO Closes – 23rd July, 2010

Investment options: Growth Option & Dividend – payout & reinvestment.

Frequency of Dividend: Under Dividend option, there would be Monthly Dividend.

Monthly Income is not assured and is subject to availability of distributable surplus.

Fund Manager: Mr. Rahul Pal (For Debt) Mr. Sadanand Shetty (For Equity & Gold ETFs)

NFO Price: Rs. 10/- face value during the New Fund Offer Period

Type of Scheme: An open-ended income scheme    

Benchmark:  75% -CRISIL MIP Blended Fund Index and 25%-Price of Gold

Minimum Investment Amount:
Growth option: Rs 5,000 and in multiples of Rs 1,000/- thereafter
Dividend option: Rs 25,000 and in multiples of Rs 1,000/- thereafter

Load structure during NFO period: 
Investment Amount: Up to any amount
Entry Load: Nil
Exit Load: 1.00% if exited up to 1 year Nil if exited after 1 year from the date of allotment.

The term 'Advantage' has been used in terms of asset allocation and not in terms of returns/yield

About Taurus Mutual Fund:

• Fastest growing Mutual Fund during F.Y. 2009-10. 
• Managing an AAUM of Rs 3056 crs as on 31/05/2010. 
• Product basket comprises of 6 Equity Funds, 1 ELSS and 4 Fixed Income Funds besides FMPs
• Taurus Liquid Fund rated AAAf by CRISIL and Taurus Ultra Short Term Bond Fund rated AAAf by CRISIL for credit quality of the portfolio.
• Two equity funds – 'Taurus Tax Shield' and 'Taurus Infrastructure Fund' bagged the prestigious Business World Best Mutual Funds Awards for the year 2009
• Launched Taurus Ethical Fund in April 2009 and Taurus Nifty Index Fund in June 2010
• An experienced & professional team across all functions
• Professional Service Providers: 
• Registrar & Transfer Agent: Karvy Computershare Pvt. Ltd 
• Custodian: HDFC Bank Ltd
• Fund Accountant: Deutsche Bank AG
• Branches in top 14 cities. Strong distribution network of more than 4000 outlets of business associates.

For more details www.taurusmutualfund.com

Mutual Fund investments are subject to market risk. Read Scheme Information Document before investing.