May 2011  

 

Dear Investor,

We are pleased to present “NRI Espresso”, a handy newsletter just for our esteemed NRI investors for the month of May 2011. It is our constant endeavour to serve your growing information, investment and servicing needs and the newsletter is created just for this purpose. This newsletter will be a collection of relevant articles of special interest to you. These include latest news, events, regulatory changes, and information on product offerings. 'NRI Corner', an exclusive section has also been created on our website for your mutual fund information and investment needs.

 

1. Economy News

Health plan success may lead to wider spread for more schemes
The government is examining the possibility of turning its two important social sector programmes into universal schemes covering the unorganised sector in phases, taking a cue from the successful extension of a health insurance plan to 23 million poor families.

The labour ministry will prepare a feasibility plan together with the rural and finance ministries that run the old age pension scheme for the below poverty line people and the Aam Aadmi Bima Yojana (AABY) targeting the rural landless.

PSU-aided sovereign wealth fund in works
CA government panel is considering forming an investment fund bankrolled by state-run companies to help India acquire large natural assets abroad, a government official has said.

The committee of secretaries, which has members from various ministries, department of public enterprises and the Planning Commission, will discuss the composition and size of this fund later this month.

Core sector grows 7.6% in March, up 5.9% in FY11
The output of the six infrastructure industries expanded at its fastest rate, at 7.6 per cent, in five months to March 2011, while manufacturing showed signs of pick up in April 2011, together indicating a possible rebound in industrial production.The firm 7.6% rise in the index for infrastructure industries in March comes a day before the Reserve Bank of India, or RBI, considers its monetary policy for the year.

March exports up 43.8% at $29.89 bn
Merchandise export in March reached $29.13 billion, up 43.8 per cent over $20.25 billion in the same month a year ago, while imports grew 17.2 per cent to $34.74 billion from $29.62 billion a year ago. With this, the country’s total exports in goods for 2010-11 financial year reached $245.29 billion, registering 37.5 per cent growth against $178.75 billion in 2009-10, according to the foreign trade data released by the Ministry of Commerce and Industry. The government had set a target to attain $200 billion worth of exports in 2010-2011 and $450 billion by 2014.

India to add 67,000 MW solar power capacity by 2022
Technological breakthroughs and economies of scale will make solar power competitive in six years and help India add 67,000 megawatts of solar generation capacity by 2022 - more than thrice the country's target, according to a report by consultancy firm, KPMG. "The present trends indicate that the prospects are very bright for solar power to be equal to conventional electricity any time after 2017, said a senior official from the Ministry of New and Renewable Energy.

The report, which will be released next week, says solar energy can contribute 7% of the total power needs of the country by 2022, helping cut coal imports by 30% or 71 million tonnes a year. This would result in saving of $5.5 billion in imports per year from 2022 onwards, it said.

2. Mutual Fund & NRI News

Regulatory Developments – Indian Mutual Fund

• RBI in its monetary policy review directed banks to limit their investments in liquid funds up to 10% of their net worth as on March 31, 2010 and has allowed banks to withdraw any excess investment from mutual funds over the next six months.

• SEBI formed a seven member panel to examine the mutual fund industry’s grievances on the abolition of entry loads in August 2009.

• AMF communicated to the SEBI that fund houses are not well equipped to do due diligence of institutional distributors and the regulator is in a better position to carry out the exercise; earlier, SEBI had advised fund houses to start implementing additional due diligence measures for institutional distribution.

3. Market Overview

Globally, markets continued to shrug off negative news and volatility touched a multi-year low reflecting huge complacency among investors. Rating agency Standards and Poor (S &P) threw a surprise by revising its outlook on sovereign rating of US from ‘stable’ to ‘negative’ indicating a one-third probability of a rating downgrade over a 2-year period. Logically, it should have been negative news for US equities, bonds and Dollar. However, the markets didn’t pay much attention to the fact that there are serious concerns about the state of public finance in developed world. Problems in the Euro Zone have just been deferred, not resolved. There are signs of moderation in economic growth; inflation is rearing its ugly head and geo-political risks persist, however, a liquidity driven rally in risk assets didn’t show any signs of cooling off. Close to zero interest rates and massive liquidity injections by central banks in developed world are surely helping but there are some other factors at work as well. Corporate profitability and cash flow generation continues to surprise on upside supporting equity valuations. However, one needs to be cautious given the low level of margin of safety in most of the asset classes today. Markets have taken the excessive liquidity in financial system for granted. Inflation has been running higher than the tolerance level of central banks in most of the economies. Risk appetite may shrink as quantitative Easing by Federal Reserve gets over by End-June and other central banks shifts their attention to deal with inflation.

The US dollar has been on a declining trend for almost a year. The DXY index reflecting dollar’s value against 6 major currencies has fallen from a high of 88 in June 2010 to 73 now. The weakness in Dollar has been one of the main drivers behind surge in prices of several commodities. Record fund flows into commodities have pushed up prices to unprecedented levels. Undoubtedly, in the longer run, resources are going to be under pressure due to huge demand from emerging economies which are witnessing strong economic growth while incremental supplies are dwindling. In case of agricultural commodities, there is a structural case for higher prices as demand is growing much faster than supply can keep pace with. Having said that, we believe that commodity prices in general could witness correction in near term as dollar is likely to see a technical rebound and demand is likely to soften in the wake of moderation in global growth. Unwinding of speculative positions could lead to sharp volatility.

In India, higher commodity prices, supply constrains and strong demand dynamics have led to inflation staying way beyond Reserve bank’s comfort level and the central bank had to bite the bullet and do a 50 bps hike in repo rate in monetary policy on May 3rd instead of continuing with its calibrated approach. Given that inflation has consistently been above their target and the tolerance level while inflationary expectations are becoming quite entrenched with a serious risk of persistent wage-price spiral, a strong action even at the cost of sacrificing growth became inevitable. The policy actions recognized the importance of price stability to maintain long term economic growth trajectory. The RBI has guided for a higher inflation in the first half while indicating that the yearend inflation for March 2012 would likely to be 6% with an upwards bias. The government is yet to pass on the impact of higher crude oil prices and we expect a rise in administered prices of motor fuel after the announcement of state election results in middle of May. The policy actions are expected to reinforce the RBI’s inflation fighting credibility and ensure that the monetary policy objectives are realized in a non disruptive manner considering the current inflation- growth dynamics.

Among other significant steps, the RBI has changed the operating procedure of monetary policy by making the weighted average overnight rate as the operating target and moving to a single operating rate i.e. the Repo rate. Moving towards a single operative rate would enhance the effectiveness of policy transmission. The savings rate too has been increased by 50 bps and investment restrictions have been imposed on Bank investment in debt oriented Mutual funds. We believe that the lagged effect of monetary tightening coupled with uncertainties on global front would increase the downward risk for growth prospects in FY 2012. Given the stance of central bank and a large government borrowing program, bond yields are likely to have an upside bias in the near term.

There has been a significant shift in liquidity situation in the banking system. The government cash balances have moved from a surplus of close to Rs 90,000 crores kept with RBI to borrowings of Rs 37,000 crores. under the Ways and Means Advances from RBI. The huge government spending in the month of April has resulted in the LAF borrowings coming down from an average of Rs 80,000 crores in the month of March to Rs 35000 crores at end April. The improvement in the liquidity situation has resulted in short term money market rates in the 3 month tenure coming down by around 170 bps over the levels in March. We expect that the liquidity situation would start tightening going forward driven by monetary tightening, higher supply of T- bills and Cash management bills and the scheduled G sec auctions. We have been running extremely low duration across our fixed income funds.

Indian equities were almost flat in the month of April after witnessing a strong upturn in March. Foreign investors pumped in $ 1.5 billion dollars. Markets ignored the macro data of rising WPI inflation and softness in Industrial production numbers. Corporate performance for the quarter ending March 2011 has been a mixed bag. Though at an aggregate level they have broadly been in line with expectations, there was couple of surprises at individual company level within each sector. As expected there are pressures on margins due to rise in wages, interest cost and raw material prices.

The markets would keenly be watching progress of Monsoon which probably has never been as critical as it is this year. Poor monsoon could not only make the inflationary situation worse and complicate problems for the RBI; it would put tremendous pressure on government finances as subsidy bill mounts. So far, the indications are that monsoon is likely to be normal this year.

Higher inflation has not been able to dent consumer spending as combined effect of rising wages and wealth effect from increase in equity, real estate and bullion prices have offset the impact. There is a structural shift in economy as GDP is likely to cross $ 2 trillion mark with per capital GDP likely to touch a level of $ 1700. Given the low base and under-penetration levels, there are several categories like packaged food and beverages, food chains, modern retail, telecom, media, healthcare and hospitality which could witness massive growth as the classic J-curve theory plays out. Similarly, there would be opportunities in the infrastructure sector as well. Presently, there are multiple headwinds for the sector. The execution of existing planned projects as well as incremental order intake has been slow. They have been dealing with issues such as delay in environmental clearances, allocation of land and mining licenses, labour shortage apart from rise in interest and material costs. However, one needs to assess how much of it is captured in the valuation. Broadly speaking, in an inflationary environment, preference would be for those companies which have visibility on growth and higher ability to pass on increased costs. Over the next few months, as markets deal with uncertainties on the global as well as domestic front, investors should take advantage of the volatility and increase allocation to equities in a gradual manner.

4. Fund Focus – Magnum InstaCash Fund

Liquid funds are an ideal investment avenue for parking short term funds, as they offer better returns. Tax efficient returns, high liquidity and low management cost are the key benefits of liquid funds. SBI Mutual Fund’s Magnum InstaCash Fund is one of the premier liquid funds in the industry, which offers a good investment opportunity for investors looking to invest their short term surplus funds.

In an exclusive interview with the Fund Manager Mr. Rajeev Radhakrishnan, he discusses the various aspects of investing in liquid funds.

1. What are liquid funds?
Liquid funds invest in short term money market securities with a residual maturity less than or equal to 91 days. The investment objective would be to generate higher returns than other comparable short term cash deployment avenues such as savings/ current accounts while providing high liquidity. Liquid funds provide high liquidity, low risk & seek to generate stable returns. These schemes are ideal investment avenues to manage the short term cash surpluses of retail Individuals, HNI’s and corporate.

2. What is the difference between liquid, income and gilt funds, when it comes to investment pattern and investment horizon?
Liquid funds focus on generating stable accrual income through judicious investment in short term money market instruments. These schemes are suitable for investors with a short term horizon ranging from overnight to a few days and who have a very low risk appetite in terms of exposure to interest rate risk. Income and Gilt funds invest predominantly in medium to long term corporate bonds and government securities respectively. These schemes are suitable for investors with a longer time horizon and higher risk appetite. The investments in Income and gilt funds are subjected to mark to market volatility as compared with liquid funds.

3. What are the key benefits of investing in liquid funds?
Liquid funds generate stable accrual income, while providing a high degree of liquidity. These schemes generate returns which closely track the trajectory of monetary policy rates via its impact on short term money markets. The investment tenure can be as low as a day & provide ease of convenience in terms of investments and redemptions.

4. Please give a comparison of liquid funds vis-ŕ-vis other similar investment avenues.
Returns generated by liquid funds over a period vary based on the prevailing liquidity scenario, monetary stance and the movement of money market yields. Liquid schemes have the flexibility of declaring dividend or a daily, weekly, fortnightly or monthly basis depending on the investor’s preference. The returns from savings account are currently regulated, whereas in case of Fixed Deposits, where the rates are more market linked, there is typically a penalty in case of premature closure. Liquid funds do not typically have an exit load and the returns are more market determined, while providing a high degree of liquidity.

5. How are liquid funds tax efficient compared to other instruments like FDs? What are the tax implications for capital gains and dividends in liquid funds?
The dividends declared by liquid funds are subjected to Dividend distribution tax as per the rates announced in the Union Budget. As per the FY12 union budget, from 01st June 2011, the dividend distributed by liquid schemes would be taxed at 30% (plus surcharge & cess) for all categories of investors. The dividends so received are tax free in the hands of the investor. The returns from FD’s are based on the marginal income tax rates applicable to the investors.

6. Are liquid funds safe? What are the risks associated with liquid funds?
Liquid funds invest only in money market securities with a residual maturity less than or equal to 91 days. These schemes provide adequate liquidity by investing in a mix of securities which include overnight cash exposures and staggered maturities. Hence, effectively these schemes carry a very low interest rate risk. Credit risks are mitigated by investing in securities with the highest credit quality. The portfolio credit quality, cash holdings and the liquidity in the secondary market are the key factors that determine the overall liquidity of the fund and its ability to effectively meet sudden unforeseen redemptions.

7. Why should one invest in Magnum Insta Cash Fund?
MICF has been positioned largely for Retail/ HNIs and small & medium corporate who desire to invest their short term cash surpluses for periods ranging from overnight to a few days, while maintaining a high degree of liquidity. MICF has been consistently rated CPR 1 as per the latest CRISIL ratings. These ratings consider the overall fund characteristics such as portfolio liquidity, diversification and credit quality apart from consistency in returns. The scheme invests only in short term securities that carry the highest ratings and also follows strictly defined internal templates that govern the scheme liquidity and portfolio diversification limits.

8. Please share the breakdown of asset allocation in MICF. What is the expense ratio of the fund?
The scheme had invested around 50% in CD’s, 15% in CP’s and Short term NCD’s and the balance in overnight CBLO/Repo as on 30th April 2011. The expense ratio of the scheme is 0.35 %.

5. Feature Article – Inflation a threat to global recovery

Introduction
The global economy has undergone extremely difficult periods since the onset of the financial crisis in 2008 in the US, which turned into a credit cum liquidity crisis and spread across the world. Though global economic recovery has been better-than-expected (world economy grew by 5% in 2010 and is expected to grow at 4.4% in 2011) following global financial crisis of 2008 but accompanying high level of inflation on the back of soaring demand has emerged as a major threat for sustained global economic recovery.

Although some level of inflation will always persist as economies grow but continuously high inflation is detrimental to growth. The common perils of inflation are reduced purchasing power of money, devoured savings as a result of negative real rates of return in many cases, decimating returns on capital, undercutting employment growth and real wages as well as squeezing corporate profits due to rising cost of credit. Thus high inflation and resultant increase in interest rates to combat inflation causes severe reduction in demand from households and corporates leading to a negative impact on country’s economy.

Of late inflationary pressure has been building in both developed and emerging countries, due to rapid increase in fuel prices and rising demand. The larger problem is that it has breached and remained and/or risen above the acceptable levels set by the central banks of respective countries. For instance, the Bank of England (BoE) has set an acceptable rate of inflation at around 2%, however, the CPI annual inflation for the UK stood at 4% in March and remained above the acceptable level in the range of 3-4.4% throughout 2010 and into 2011. However, BoE believed that inflation by 2012 will fall below its target and hence it has not increased interest rates yet. On the other hand, in the 17-member euro area, the annual inflation was 2.7% in March, up from 2.4% in February. Among emerging economies, China’s consumer prices rose 5.4% in March from February’s annual growth of 4.9%. In India, the Reserve Bank of India had targeted an inflation rate of 7% for March, which, it revised to 8% recently. India’s latest monthly wholesale price index (WPI) based inflation rate came at 8.98%, far exceeding RBI’s projection. For developed nations inflation has been on rise mainly due to supply side factors while for developing countries inflation has been due to combination of demand and supply related factors.

However, there is no correct panacea for inflation woes as each central bank / government tries to strike a balance between growth and monetary/fiscal measures. For instance, the People's Bank of China has already raised its reserve ratio four times in this year. Brazil’s central bank has raised its target rate thrice this year by a total of 125 bps. Similarly, India too has raised repo and reverse repo rates nine times during the last 1 year. Among developed economies, unlike BoE, the European Central Bank (ECB) had raised interest rates for the first time in nearly three years on April 7 by 25 bps to 1.25%.

Globally inflation surge has been led by high food and crude oil prices. A look at the graph below will confirm the same:-

The International Monetary Fund (IMF), in its latest World Economic Outlook report, has said that the threat of further oil price increases has become an important downside risk for global economic growth, compounding the difficulties posed by overheating in emerging economies and persistent unemployment in developed countries.

As per the report, though the IMF expects demand for commodities will moderate this year, the outlook for oil markets remains quite uncertain amid continued political turmoil in the Middle East and North Africa (MENA) region. For emerging markets, the IMF stated that ‘inflation pressure is likely to build further as growing production comes up against capacity constraints, with large food and energy price increases, which weigh heavily in consumption baskets, motivating demands for higher wages.

Inflation has also been high in India as already put forth earlier. The graph below illustrates the movement of the monthly Wholesale Price Index (WPI) inflation:

High levels of domestic inflation had caused the RBI to increase its policy rates, viz., the repo and reverse repo rates, several times in 2010 and in 2011. These rates currently stand at 7.25% and 6.25% respectively. This has also affected the domestic bond market where the yield on the 10-year benchmark security has remained very high. The new 10-year gilt, which had been issued recently on April 8 with a yield of 7.80%, has seen its yield rise to 8.12% on April 25, with high inflation being a primary reason for the rise. The monetary measures taken by the RBI to rein in inflation, though, have reduced it from its double digit high of 11% in 2010; it still remains out of its comfort zone. And due to the unexpectedly high rate in March 2011, the expectation of another rate increase was high when the RBI had announced its credit policy for FY12 on May 3, 2011. The RBI actually increased repo and reverse repo rate raised by 50 basis points each to 7.25% and 6.25% from May 3, 2011.

The expectation of elevated levels of inflation continues to remain across the world with multilateral agencies like the IMF and central banks voicing their concern. In developed nations, central banks are reluctant to raise interest rates as nature of inflation for developed economies (supply side inflation) is different that inflation in developing economies (combination of demand and supply side inflation) and they believe that their economies have not recovered from recession yet. In contrast, in developing nations with strong recovery, economic growth has outpaced potential supply capacity thereby putting upward pressure on the inflation. Tightening of monetary policy in these countries is likely to hurt growth in short term but is necessary to combat inflation.

6. Personal Finance – Retirement Planning

Introduction
Retirement planning means setting aside money or other assets to obtain a steady income after retirement. In other words, it is a process that figures out the amount one needs to save every month in order to enjoy the desired post-retirement lifestyle. The most important point here is that this planning must ideally start from the day one starts working.

Need for Retirement Planning

• Secure Future: The foremost reason to build a retirement plan is to have a financially secure future during one’s post-working life. Further, most individuals desire to lead a similar lifestyle even post-retirement. This would basically mean no change in major expenditure patterns pre and post-retirement.

• Inflation factor: Money loses its value as time progresses, thanks to inflation. This is called time value of money. It means that a rupee now will have a lesser value in future or will be able to buy fewer goods in future. Hence, in order to maintain the same standard of living, one would need more money post retirement than what is being spent now. This figure would be the future value of the current expenditure figure using the relevant inflation multiple. If one can have this amount to spend post-retirement, he can continue to lead the same lifestyle.

• Higher Life Expectancy: Due to continuous improvement in the healthcare services, the life expectancy of the people has gone up, owing to which one has to plan for a longer retired life thereby lending more importance to the entire process of retirement planning.

• Unforeseen Medical Expenses: Old age typically brings medical problems and increased healthcare expenses. Without a sufficient retirement investment corpus, living in comfort while also covering medical expenses may turn out to be a burden too large to bear. The retirement corpus must include a component for such unforeseen medical costs.

• Private sector employees have no pension policies like government employees: Unlike public sector and government employees, those in the private sector do not have the privilege of a pension post-retirement. The recent government initiative of a New Pension Scheme (NPS) for all is still to pick up among the general public and even in that it is only the investor who pays for his pension. In such a situation, it becomes all the more important to follow the golden rules to plan early for one’s retirement.

Benefits of early retirement planning

The biggest benefit of retirement planning is the power of compounding which works best across longer time horizons. For example, if a 25 year old individual wants to retire at the age of 60 years, he has 35 years of working life to save. If he starts saving Rs.1,000 per month at the rate of 6% p.a. compounded for the next 35 years, his investment corpus will grow to almost Rs.14 lakhs. Alternatively, if one starts investing at the age of 35 years, his investment corpus will grow to almost Rs.7 lakhs. With the lag of 10 years, an individual’s retirement corpus at 60 years has almost halved. Thus, the sooner one starts investing, the more aggressively his money will work for him thanks to the power of compounding.

Stages in Retirement Planning

Retirement planning can be done effectively if it is done in a stage wise manner, i.e., depending on the age group one falls in, investment sources can be determined for maximum benefits. One should allocate their investment amount over the following three stages -

• Accumulation stage: This stage is typically the starting point of one’s career. As the name suggests, this stage signifies aggressive accumulation of wealth. This can be done by steadily investing in direct equity and equity related instruments like mutual funds via the SIP route, ELSS, etc. as young individuals have longer time horizons and high risk tolerance levels. During this stage, one should also have adequate insurance cover to protect against uncertainties. This cover should gradually increase depending upon premium paying capacity.

• Preservation stage: This stage is represented by middle-aged individuals that have a higher responsibility such as children’s education and marriage expenses, dependent parents’ expenses etc. Hence they have lesser risk bearing capacity. At this stage, investors should follow a conservative approach and use the balanced model of equity and debt. Pension plans also known as retirement plans such as Employees Provident Fund (EPF), Public Provident Fund (PPF), Post Office Monthly Income Scheme (POMIS) can generate consistent returns and also reduce the risk of volatility. One can also go for the recently launched New Pension System (NPS) for employees.

• Distribution stage: This is the stage of retirement as well as post-retirement. One must note that the retirement planning process does not end once an individual retires. This is the phase of consolidation and requires careful evaluation of investments. In this stage, one may no longer derive a regular income from profession / business; hence the financial plan should be robust enough so that these years are carefree. At this stage, there should not be any risky investments in his portfolio but only safe options like bank deposits, liquid mutual funds, short-term debt funds so that risk of depreciation of assets is minimized and there is high liquidity. By this stage, one must also have adequate coverage for health and accident insurance to take care of unforeseen medical expenses.

Retirement planning does not end following the above stages diligently and stopping after that. It involves continuous revision of one’s plan and rebalancing the same to make sure that it meets one’s investment objective in a dynamic market scenario.

Summing up, human capital and financial wealth are the primary assets for any individual. Human capital is high during the initial investment stages while financial wealth gains proportion with age. Both assets should be combined to construct an optimal retirement portfolio. Thus, early retirement planning is the key to maintain a good lifestyle post-retirement. The earlier one starts the higher would be the benefit from the power of compounding (leading to a larger retirement corpus). One must invest / save with perseverance and through habit during the working years to lead a pleasant retired life.

Disclaimer: In the preparation of the material contained in this document, the AMC has used information that is publically available, including information developed in-house. Information gathered & material used in this document is believed to be from reliable sources. The AMC however doesn’t warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material, no such party will assume any liability for the same. Further, all opinions included in this newsletter as of date & are subject to change without any notice. All recipients of this material should seek appropriate professional advice and carefully read the offer document and before dealing and or transacting in any of the products referred to in this material make their own investigation. The Fund, the AMC & Trustees and any of its directors, officers, employees and other personnel shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner whatsoever. The recipient alone shall be fully responsible / are liable for any decision taken on this basis of this material. This newsletter is prepared for distributor and private circulation only. The distributor will abide by the regulation/ code of conduct issued from SEBI/ AMFI from time to time.

Risk Factors:
Mutual Funds and Securities Investments are subject to market risks and there is no assurance or guarantee that the scheme's objectives will be achieved. As with any other investment in securities, the NAV of the Magnums/Units issued under the scheme(s) may go up or down depending upon the various factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund/Scheme(s) and their affiliates do not indicate the future performance of the Scheme(s) of the Mutual Fund. The names of the scheme(s) do not, in any manner, indicate either the quality of the scheme(s) or their future prospects and returns. For scheme-specific risk factors please refer to the offer document of the scheme. Please read the offer document before investing. Investment Objective: Magnum InstaCash Fund - The investment objective of the scheme is to provide the investors an opportunity to earn returns through investment in debt & money market securities, while having the benefit of a very high degree of liquidity to meet unexpected needs of cash. Statutory details: SBI Mutual Fund has been set up as a trust under the Indian Trusts Act, 1882. State Bank of India ('SBI'), the sponsor is not responsible or liable for any loss resulting from the operation of the schemes beyond the initial contribution made by it of an amount of Rs. 5 lakhs towards setting up of the mutual fund. Asset Management Company: SBI Funds Management Private Limited (A joint venture between SBI and Société Générale Asset Management) -191, Maker Tower 'E', 19th Floor, Cuffe Parade, Mumbai 400 005. Trustee Company: SBI Mutual Fund Trustee Company Pvt. Ltd. Mutual Fund investments are subject to market risks. Please read the Offer Document carefully before investing.