swapna
23-06-2008, 10:19 AM
Offer Closing on June 25, 2008
Birla Sun Life Asset Linked Portfolio is another structured product from the house of Birla Sun Life Asset Management Co. Ltd; Birla Sun Life Asset Linked Portfolio – Accelerator – Series 1, A Nifty Linked Structured Product, primarily for the investor group who would like to capture the potential upside of the equity market.
How it Works
A product with a blend of debt & equity derivatives, roughly 87% - 92% would be used for debt to reach at a level of 100% after 12-15 months period and 8% - 13% would be used for the equity derivatives part to offer the upside of the index to investors.
This investment option is being offered to investors in the form of a Non-Convertible Debenture (NCD). An NCD is a highly marketable instrument of credit given by the borrower to the lender.
Unique Selling Propositions
Best suitable for the investors’ who are bullish with the market movements and expect market to grow not more than 30% over a period of 1 year.
170% participation rate on the upside of the reference index.
Highly rated debt instruments are used hence less risk is involved.
It captures more effectively the potential upside of the equity universe and offers capital protection at the same time.
Facts to Know
Tenor
12/15 Months
Reference Index
S&P CNX Nifty Index
Fixed Coupon*
18% Abs. if knockout is met
Minimum Investment
25 Lacs
Knockout Barrier
130% of the Reference Index
Reference Index Participation
170% Upside till Nifty is up by 30%, if more than 30%, a flat fixed coupon of 18% (Abs.)
Downside Participation
No downside participation, however principal amount is protected under all market conditions.
Charges**
1.5% of the invested amount
Brokerage
1.00% Gross
* 18% fixed coupon will be offered when reference index met the knockout barrier at any of the observation dates.
** Charges to be collected over and above the investment amount.
BSL ALP–Accelerator–Series 1 Vs Assumed Market Movements
Sensex Levels
15000*
16500
18000
19350
19500
Nifty Levels
4500*
4950
5400
5805
5850
Change in Index (%)
Unchanged
10
20
29
30
Absolute Returns (%)
Capital Protected
17
34
49.3
18**
Annualized Returns Post tax (%)
-
12.05
24.11
28.11
12.76
*Sensex & Nifty levels are assumed to be at 15000 and 4500 respectively.
**Index has touched the knockout barrier and as per the contingent conditions a fixed coupon of 18%
Birla Sun Life Asset Linked Portfolio is another structured product from the house of Birla Sun Life Asset Management Co. Ltd; Birla Sun Life Asset Linked Portfolio – Accelerator – Series 1, A Nifty Linked Structured Product, primarily for the investor group who would like to capture the potential upside of the equity market.
How it Works
A product with a blend of debt & equity derivatives, roughly 87% - 92% would be used for debt to reach at a level of 100% after 12-15 months period and 8% - 13% would be used for the equity derivatives part to offer the upside of the index to investors.
This investment option is being offered to investors in the form of a Non-Convertible Debenture (NCD). An NCD is a highly marketable instrument of credit given by the borrower to the lender.
Unique Selling Propositions
Best suitable for the investors’ who are bullish with the market movements and expect market to grow not more than 30% over a period of 1 year.
170% participation rate on the upside of the reference index.
Highly rated debt instruments are used hence less risk is involved.
It captures more effectively the potential upside of the equity universe and offers capital protection at the same time.
Facts to Know
Tenor
12/15 Months
Reference Index
S&P CNX Nifty Index
Fixed Coupon*
18% Abs. if knockout is met
Minimum Investment
25 Lacs
Knockout Barrier
130% of the Reference Index
Reference Index Participation
170% Upside till Nifty is up by 30%, if more than 30%, a flat fixed coupon of 18% (Abs.)
Downside Participation
No downside participation, however principal amount is protected under all market conditions.
Charges**
1.5% of the invested amount
Brokerage
1.00% Gross
* 18% fixed coupon will be offered when reference index met the knockout barrier at any of the observation dates.
** Charges to be collected over and above the investment amount.
BSL ALP–Accelerator–Series 1 Vs Assumed Market Movements
Sensex Levels
15000*
16500
18000
19350
19500
Nifty Levels
4500*
4950
5400
5805
5850
Change in Index (%)
Unchanged
10
20
29
30
Absolute Returns (%)
Capital Protected
17
34
49.3
18**
Annualized Returns Post tax (%)
-
12.05
24.11
28.11
12.76
*Sensex & Nifty levels are assumed to be at 15000 and 4500 respectively.
**Index has touched the knockout barrier and as per the contingent conditions a fixed coupon of 18%