Religare Business Leaders Fund NFO: Review Analysis & Details

The Religare Mutual Fund house has come out with its New Fund offer or NFO. They have launched a new fund called the Religare Business Leaders Fund. Seems like the Investor sentiment is high, and the mutual fund companies are finding this to be the right time to come out with the NFO for their new funds.

High on the heels of Reliance, which recently concluded the NFO or New Fund Offer for its Reliance Infrastructure Fund: (Review & Analysis of NFO), and then the Franklin Templeton Investments (India), has also come out with its Infrastructure focussed fund called the Franklin Build India Fund FBIF NFO: Review Analysis & Details. In this article, we will analyse how good is this Religare Business Leaders Fund NFO, whether this Religare Business Leaders Fund offers anything new or unique for the investors and whether the investors should invest in Religare Business Leaders Fund .
Let's begin with some details about Religare Business Leaders Fund .
What are the NFO dates for Religare Business Leaders Fund ?
The NFO for Religare Business Leaders Fund will open on July 10, 2009 and will close on July 31, 2009.

What is so unique about this Religare Business Leaders Fund ?
The scheme document document cites the scheme objective as focussing on investment in companies and stocks which Religare believes are Business Leaders in their own respective sector. Now this has many implications:

- The fund has not categorized any specific industry, hence it will not be limited to any specific sector

- Continuation to the above point, there may be divewrsification benefits, as well as sector & company specific risk in case of over-exposure which may underperform and under-exposure to any specific sector & company which may outperform

- Everything is in the hands of the fund manager - he has to select the so called "Business Leaders" from his preferred Industry sectors. Hence, the returns of this fund will be driven by the fund managers ability to pick the real winners or leaders

Apart from above, there is nothing so special or unique about this fund. It has the title "Business Leaders Fund" - and is attempting to generate returns from investing in companies or stocks which the fund manager believes that are leaders.

Nothing so different about the investment strategy:
Though specific numbers are not available, the details for investment cite that fund money will be put into equity and equity related instruments including equity derivatives.

What is the Load Structure (Entry Load & Exit Load) for Religare Business Leaders Fund ?
During NFO Period - Entry Load: 2.25% for investment < Rs 2 crs and 1.25% for investment = > than Rs 2 crs. Exit Load 1% for investment < Rs 5 crs, if redeemed on or before 1yr from the date of allotment. Investment through SIP Entry Load-Nil, Exit Load 1% for each SIP installment < Rs 5 crs, if redeemed on or before 2 yrs from the date of allotment.

Religare Business Leaders Fund NFO offer price: Rs. 10 per unit plus applicable load, if any.

Final Thoughts about the Religare Business Leaders Fund?
Nothing so special or unique about the Religare Business Leaders Fund - same asset allocation promise, same long only investment strategy, same load structure as like the other fund. investors who believe in the fnd management skills of Religare and have trust that the fund manager will be able to bet their money correctly by selecting the real business leaders of various industry sectors can invest in this fund. It's the investors call