8/14/2019 BSL EqLinked FMP Presentation
1/28
The Great India Story
Page 1Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
30Jun08
8/14/2019 BSL EqLinked FMP Presentation
2/28
Oops!!! What happened here
Page 2Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
3/28
Confused!!!
Where to invest your hard earned money???
Page 3Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
4/28
Structured Products have
SOLUTIONS for You
Structured Products combining
Page 4Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
Heat of Equities & Calmness of Debt
8/14/2019 BSL EqLinked FMP Presentation
5/28
Birla Sun Life Mutual Fund
(A Closed End Structured Debt Scheme)
Page 5Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
Mutual Fund investments are subject to market risk. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
6/28
Equity Linked Debenture
BondPrincipal
ro ec on
Equity LinkedDebentures
Call OptionEquity
Participation
Equity linked debentures are non convertible debentures
such as S&P CNX Nifty or any/group of equity shares
Bond: Provides for Principal Protection
Page 6Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
Call Option: Provides the Exposure to Equity Index / Stock
8/14/2019 BSL EqLinked FMP Presentation
7/28
Risk-Return Profile
Returns
ELD
Equity
FMP
Risk
Market Linked Returns
Page 7Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
Controlled Level of Risk
8/14/2019 BSL EqLinked FMP Presentation
8/28
The Advantage
Traffic rules have changed for your investments vehicle
Market Goes Up
Index Linked Returns with NO Downside Risk*
Market Goes Down
You Dont Lose Your Initial Corpus*
Page 8Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
* Subject to the credit risk of the issuers of equity linked debentures
8/14/2019 BSL EqLinked FMP Presentation
9/28
Typical Payoff Scenario
Return of Capital*
if underlying index is below the starting level
Return of Capital + Equity Upside
if underlying index is above the starting level
NiftyELD
Starting Index Level
Page 9Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
Profit / Loss* Subject to the credit risk of the issuers of equity linked debentures ; The hypothetical illustration assumes 100% participation in the upside of the equity index
8/14/2019 BSL EqLinked FMP Presentation
10/28
Typical Payout & Returns Analysis
Hypothetical Illustration
S&P CNX Nifty
Level
Return on
S&P CNX Nifty
Investment
(In Rs.)
Total Payout
(In Rs.)
Return on
ELD
7,500 50% 5,000 7,500 50%
7,000 40% 5,000 7,000 40%
6,500 30% 5,000 6,500 30%
6,000 20% 5,000 6,000 20%
ps e
Linked to
EquityIndex5,500 10% 5,000 5,500 10%
5,000 0% 5,000 5,000 0%
4,500 -10% 5,000 5,000 0%
4,000 -20% 5,000 5,000 0%
3,500 -30% 5,000 5,000 0%
3,000 -40% 5,000 5,000 0%
Lose Your
Initial
Corpus*
Page 10Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
2,500 -50% 5,000 5,000 0%
* Subject to the credit risk of the issuers of equity linked debentures; The hypothetical illustration assumes 100% participation in the upside of the S&P CNX Nifty
8/14/2019 BSL EqLinked FMP Presentation
11/28
Concept of ELD
Participation Ratio:
Participation ratio is the ratio at which ELD participates in the appreciation of the underlying equity index. Eg.
par c pa on ra o o mp es a a ncrease n e un er y ng equ y w resu n a na equ y- n e
coupon of 10%
Knock Out Event / Level:
, , ,
the index starting level, by more than the percentage as mentioned at the time of issuing of the ELD. Eg. If Knock
Out Level mentioned at the time of issue is 100% and Nifty starting level is 5,000. Then Event of Knock Out will
happen, if any time during the tenor of scheme Nifty rises by 100% to 10,000 level.
Knock Out Coupon is a fixed coupon paid in the event of underlying index hitting the Knock Out Level. Eg. Knock
out level is 100% & knock out coupon is 50% then if the index hits the knock out level of 100%, investors would be
paid a fixed coupon of 50%
Closing Value:
Nifty Returns calculated based on the average of last 3 months. Eg. If tenor of the scheme is 36 months then the
Closing Value = (M34 + M35 + M 36)/3; where M34 = Closing Nifty Value at the end of 34 th month, M35 = Closing
Page 11Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
y a ue a e en o mon = os ng y a ue a e en o mon .
All observations to be aligned to futures expiry date of the respective months in which the observations are made
8/14/2019 BSL EqLinked FMP Presentation
12/28
BSL Equity Linked FMP
Investment Strategy:
other Debt Instruments These debentures will be of investment grade and rated by an accredited rating agency
Scheme will mature in line with the maturity of the debentures
Scheme may also invest upto 30% of net assets in Options maturing in line with
maturity of the Plan.
Overall strategy would be to Buy & Hold these instruments
BSL Equity Linked FMP has flexible investment plans structured to match the
nves ors r s -rewar o ec ves
Page 12Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
13/28
Series A Aviator Plan (36 months plan)
Jet Setting Upside of Equity Market#~ &
No Downside Risks* in case the Markets Go Down
Page 13Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
# S&P CNX Nifty Index; ~ Subject to Terms & Conditions; * Subject to the credit risk of the issuers of equity linked debentures.
8/14/2019 BSL EqLinked FMP Presentation
14/28
Series B Gladiator Plan (21 months plan)
Accelerated Upside of Equity Market#~ &
No Downside Risks* in case the Markets Go Down
Page 14Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
# S&P CNX Nifty Index; ~ Subject to Terms & Conditions; * Subject to the credit risk of the issuers of equity linked debentures
8/14/2019 BSL EqLinked FMP Presentation
15/28
Aviator Plan - Scheme Snapshot
Aviator Plan:For jet setting upside of the equity markets#
Payoff Scenario
An Equity Linked FMP with maturity of 36
months ELP150%
175%
-
For instance, if Nifty rises by 10%, than you
will get a coupon of 14% to 14.50%
Nifty
75%
100%
125%
noc ou eve o o noc
Out Coupon of 57% to 65%
For instance, during the observation period
25%
50%
-25%
Knock Out Level
Knock Out Coupon @ 57%
Index Levels
(monthly) if Nifty rises by 90% & above, than
you will get a fixed coupon of 57% only,
irrespective of the closing level of Nifty at the
Starting Index Level
Profit / Loss / Coupon
-50%
Page 15Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
end of the tenor of the schemePlease refer slide no. 16, 24, 26, 27# S&P CNX Nifty Index
8/14/2019 BSL EqLinked FMP Presentation
16/28
Key Features of ELD
Aviator Plan Series A
a ur y per o : mon s; oupon ayo ase on movemen o y.
Indicative Payoff conditions#:
Participation Ratio (PR): 140% to 145% of the Nifty Returns
If Nift Returns are ne ative:
Coupon = NIL
If Nifty Returns are positive:
Coupon = PR * Nifty Returns[(Closing Value Initial Value) / Initial Value]
Closing value: (M34 + M35 + M36) / 3
Average of the closing Nifty value as on the last Thursday of 34M, 35M, and 36M
Knockout Level: 190% to 200% of the Initial valueObservation Dates for knockout: As on the last Thursday of each month start from the date of
allotment
Coupon on Knockout: 57% to 65%
Page 16Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
are made.# Refer slide no. 27
8/14/2019 BSL EqLinked FMP Presentation
17/28
Scenario Analysis Aviator Plan
Calculations are based on the assumption that Initial Value of Nifty is 5,000.
Nifty
(%)
Event Occurred3,500 -30% NO NIL
4,500 -10% NO NIL
5,000 0% NO NIL6,000 20% NO 28.00%
7,500 50% NO 70.00%
, .
10,500 110% YES 57%
Page 17Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
-The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances. Past performance
including such scenarios may not reflect future performance. Source (Nifty Data) www.nseindia.com; Computations Internal.
8/14/2019 BSL EqLinked FMP Presentation
18/28
Back-Testing Aviator Plan
300%
Structure vs. Nifty(Monthly 3 Years Rolling Returns 179 Instances)
200%
250%
Structure Outperforms Nifty 64%
150%
investors get fixed coupon @ 57%*
50%
100%
0%
Jul-90
Jan-91
Jul-91
Jan-92
Jul-92
Jan-93
Jul-93
Jan-94
Jul-94
Jan-95
Jul-95
Jan-96
Jul-96
Jan-97
Jul-97
Jan-98
Jul-98
Jan-99
Jul-99
Jan-00
Jul-00
Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
ELD Nifty
Page 18Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances. Past performanceincluding such scenarios may not reflect future performance. * Fixed coupon may vary from 57% to 65%.
Source (Nifty Data) www.nseindia.com; Computations Internal.
8/14/2019 BSL EqLinked FMP Presentation
19/28
8/14/2019 BSL EqLinked FMP Presentation
20/28
Key Features of ELD
Gladiator Plan Series B
a ur y per o : mon s; oupon ayo ase on movemen o y.
Indicative Payoff conditions#:
Minimum Coupon: 12.25% absoluteParticipation Ratio (PR): 97% to 100% of the Nifty Returns
y e urns are nega ve:
Coupon = 12.25%
If Nifty Returns are positive:
Coupon = MAX {12.25%, PR X Nifty Returns[(Closing Value Initial Value) / Initial Value]} n a va ue: verage o o serva ons .e. ar eve .e. y on e a e o nves men n an y
level on the last Thursday of 1st, 2nd and 3rd month, with each reading floored at 95% of the start level.
Closing value: (M16 + M17 + M18) / 3
Average of the Nifty Index as on the last Thursday of 16M, 17M, and 18M
noc ou eve : o o e n a va ue
Observation Dates for knockout: As on the last Thursday of each month starting from the 4th month onwards
Coupon on Knockout: 17% to 19%
All observations to be aligned to futures expiry of the respective months in which the observations are made.
Page 20Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
# Refer slide no. 27
8/14/2019 BSL EqLinked FMP Presentation
21/28
Scenario Analysis Gladiator Plan
Calculations are based on the assumption that Initial Value of Nifty is 5,000.
Nifty
(%)
Event Occurred3,500 -30% NO 12.25%
4,500 -10% NO 12.25%
5,000 0% NO 12.25%5,500 10% NO 12.25%
6,000 20% NO 20.00%
,
7,500 50% YES 17%
Page 21Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
-The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances. Past performance
including such scenarios may not reflect future performance. Source (Nifty Data) www.nseindia.com; Computations Internal.
8/14/2019 BSL EqLinked FMP Presentation
22/28
Back-Testing Gladiator Plan
250%
Structure vs. Nifty(Monthly 21 months Rolling Returns 179 Instances)
200%
Structure Outperforms Nifty 57% times
100%
get fixed coupon @ 17%*
0%
50%
-50%
Jul-90
Jan-91
Jul-91
Jan-92
Jul-92
Jan-93
Jul-93
Jan-94
Jul-94
Jan-95
Jul-95
Jan-96
Jul-96
Jan-97
Jul-97
Jan-98
Jul-98
Jan-99
Jul-99
Jan-00
Jul-00
Jan-01
Jul-01
Jan-02
Jul-02
Jan-03
Jul-03
Jan-04
Jul-04
Jan-05
ELD Nifty
Page 22Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances. Past performanceincluding such scenarios may not reflect t future performance. * Returns may vary from 19% to 19.50%.
Source (Nifty Data) www.nseindia.com; Computations Internal.
8/14/2019 BSL EqLinked FMP Presentation
23/28
Equity Linked FMP vs. other Instruments
Features Aviator PlanGladiator
PlanEquity#
Conventional
3 Year FMP
Fixed
De osits
Tenor 36 Months 21 Months 36 Months 36 Months 36 Months
Equity Participation Yes Yes Yes No No
Participation Ratio
o
145%97% to 100% - - -
Nature of Return LTCG LTCG LTCG Income Income
**
Pre Tax Net Indicative Yield
- . . . . . .
- Average 36.63%`` 15.39%`` 30.20% 9.50%* 8.85%^
`` Based on back testing results for the period July 1990 to March 2005
# Returns are based on avera e erformance of e uit diversified schemes as defined b value research as on 31st Ma 08.
Page 23Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
* Current 3 Year FMP yields; ^ Current 3 Year FD Rates as offered by State Bank of India
** Subject to Exit Load/Charges
The scenarios depicted above are for illustration purposes only and actual future market conditions may result in significant variances.
8/14/2019 BSL EqLinked FMP Presentation
24/28
Key Risk Factors
Credit Risk ELDs are issued by NBFCs & are subject to their credit risks
Liquidity Risk Liquidity in ELD is very limited & may not be marketable
Interest Rate Risk If the interest rates move up, investor may be subject to
significant price risk
Market Risk Payoff on ELD is linked to return from underlying equity index. If index
does not appreciate, returns to investor may be negligible.
Page 24Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
25/28
Scheme Features
Type of Scheme A Close ended Structured Debt Scheme
Investment Objective The Scheme seeks to invest in short and medium term debt instruments with fixed and/or floating payouts linked to equity indices.
The Scheme may also undertake to invest in derivative contracts. These instruments will normally mature in line with the time profile
of the Scheme. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme
oes no guaran ee n ca e any re urns
Asset Allocation
Debt instruments, Money MarketInstruments and Securitized Debt
70% to 100%
Derivative Options 0% to 30%
New Fund Offer Price Rs. 10 per unit
Date of opening of NFO Thursday, June 26th , 2008
Date of Closing of NFO Wednesday, July 23, 2008Load Structure
Entry Load
(NIL for direct applications)
Retail Plan: Series A Series B
For Purchase / Switch-in of units less than Rs. 5 crores in value 2.25% 1.50%
For Purchase / Switch-in of units equal to / greater than Rs. 5 crores in value: NIL NIL
Institutional Plan:For Purchase / Switch-in of units: NIL NIL NIL
Exit Load For Retail & Institutional Plan:
If repurchased on or before 365th day from the date of allotment: 2%
If repurchased after 365th day from the date of allotment, but before maturity date: 1%; If repurchased on maturity date: NIL
Page 25Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
Benchmark Index CRISIL Balanced Fund Index
NAV Disclosure Once a week; Every Wednesday and on 1st business day of each calendar quarter.
Liquidity 1st Business Day of each calendar quarter (subject to applicable load)
8/14/2019 BSL EqLinked FMP Presentation
26/28
Statutory Details
Statutory Details: Constitution: Birla Sun Life Mutual Fund has been set up as a Trust under the Indian Trust Act, 1882. Sponsors: Aditya Birla
Nuvo Limited & Sun Life (India) AMC Investments Inc [liability restricted to seed corpus of Rs. 1 Lac]. Trustee: Birla Sun Life Trustee Company Pvt.
Ltd. Investment Manager: Birla Sun Life Asset Management Company Ltd.
Risk Factors: Mutual Funds & securities investments are subject to market risks & there can be no assurance or guarantee that the objectives of
the Scheme will be achieved. As with any investment in securities, the NAV of the Units issued under the Scheme may go up or down dependingon the various factors & forces affecting capital markets & money markets. Past performance of the Sponsor / Investment Manager / Mutual Fund
does not indicate the future performance of the Scheme & may not necessarily provide a basis of comparison with other investments. Birla Sun
e qu y n e s on y e name o e c eme oes no , n any manner, n ca e e er e qua y o e c eme or s u ure prospec s
or returns. Scheme Specific Risk Factors: The Scheme should have a minimum of 20 investors & no single investor should account for more than
25% of its corpus as per SEBI guidelines. The Scheme is subject to credit risk, liquidity risk, interest rate risk & market risks. For further Scheme
Specific Risk Factors & other details please read the Scheme Information Document (SID) carefully before investing.
Page 26Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
27/28
Disclaimers
*The back testing results in the previous slides are based on certain features of the structure of Equity Linked Debenture and assumptions. For details of
the same, please refer to slide no.16 & 20. Past performance including such scenarios may not reflect future performance. The back testing results are for
reference onl and a variet of market factors and assum tions ma affect the results and the same do not reflect all ossible scenarios. There is no
certainty that the parameters and assumptions used in the analysis can be duplicated with actual trades. Any reference rates or prices, which appear is
these results are not necessarily indicative of reference rates or prices. Although this information is obtained from sources we consider reliable, we do not
represent that it is accurate or complete.
Key features / Payoff conditions are indicative and are subject to change depending on change in market conditions and the issuers terms. The back
testing results are calculated based on the term sheets received from various issuers / potential issuers. For some reason, if the issuers / potential issuers
cannot issue the Equity Linked Debentures as per the term sheets received from them, the investment allocation, the return payoff or actual results could
be significantly different from the ones mentioned. The results could also vary significantly if there are not adequate number of issuers / instruments in the
market to subscribe to. Key assumptions: 96% investment in equity linked debentures in Series A and 97% in series B. The Fund returns are calculated
net of all expenses.
This document is meant for private circulation only and should not at any point of time be construed to be an invitation to the public for subscribing to the
units of Birla Sun Life Mutual Fund. Birla Sun Life Mutual Fund does not solicit any action based on the information contained in the document and does
not recommend any action based on the same. The information/graphs/charts contained in this document are based on certain assumptions and have
been compiled from sources, which Birla Sun Life Asset Management Company Limited (BSLAMC) believes to be reliable, but cannot guarantee its
accurac or com leteness. O inions ex ressed and facts referred to in this document are sub ect to chan e without notice and BSLAMC is under noobligation to update the same. Please read the SID carefully for scheme specific risk factors and other details before investing.
Page 27Mutual Fund investments are subject to market risks. Please read the Scheme Information Document carefully before investing.
8/14/2019 BSL EqLinked FMP Presentation
28/28
Top Related