The fund plans to invest 80 % of the proceeds in equity and the remaining 20% in fixed income securities. The offering comes with both dividend and growth variants.

The investment objective of the scheme is to generate long-term growth of capital by investing in a portfolio of equity and equity related securities. The scheme would follow an investment strategy that would take advantage of Special Situations and Contrarian investment style.

The special situations have been known to enhance the value of the businesses that eventually gets reflected in share prices. The investment strategy is all about identifying those stocks that have either undergone or have the potential of special situations.

Speaking on the occasion of the fund launch Mr. Mukul Gupta, CEO, Birla Sun Life Mutual Fund said, Today, India Inc is witnessing a spate of special situations. Mergers & Acquisition deals; Private Equity investments, open offers and buybacks have become the order of the day. This trend is expected to continue in the future, as most quality companies would plan for expansions, enter new business lines and restructure existing businesses. We would use our investment expertise to identify the right special situations in our new fund that can generate superior returns.

The number of special situations stands testimony to this. India saw a 180% increase in FDI year on year in 2006-07 from USD 5.6bn to USD 15.7 billion. Merger & Acquisition and private equity deals saw an increase of 67% in number terms (467 to 782) and 54% in terms of value (Rs.73200 crore to Rs. 112800 crore) in 2006. Similar trends have been observed in the number of open offers, delistings, business restructuring, IPOs etc.

Birla Sun Life Special Situations Fund would endeavor to capture the special situations that result from corporate actions, market dynamics or a blend of both.

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