Birla Mutual Fund launches Birla Infrastructure Fund

2nd February, 2006

Birla Mutual Fund has launched Birla Infrastructure Fund, an open ended growth scheme, on 31 January 2006. The minimum investment is Rs. 5000 and has dividend (payout and reinvestment) and growth options. The performance of the fund will be benchmarked against the S&P CNX Nifty index.

Birla Infrastructure Fund is a diversified equity fund which will target growth of capital by investing in equity/ equity related instruments of companies that are participating in the growth and development of infrastructure of India and intends to ride the boom that the infrastructure segment is witnessing.

The team from Birla Mutual Fund. From left to right: Mr. Ravi Sharma , Head, Retail sales; Mr. Bala Subramanian, CIO; Mr. S V Prasad, CEO; Mr. Raghvendra Nath, Head, Strategy; Mr. Mahesh Patil, Fund Manager
Mr S V Prasad, CEO Birla Mutual Fund said, "Infrastructure is a distinct asset class in itself. It comprises of multiple sectors and industries." He added, " With the economy expected to grow at 7.5 - 8 per cent this fiscal, the infrastructure is also expected to show a robust growth. "

Infrastructure development plays a very important role in the country's development and GDP growth. Robust growth in the Indian economy, post economic liberalisation since 1991, has resulted in increased demands on the country's already stretched infrastructure. Economists say that a country can grow at an additional rate of 2-3 per cent if it has proper infrastructure in place. The pace of infrastructure growth in India is set to accelerate in the near future.

The size of the opportunity is quite large considering that the government is envisaging power for all by 2012. More than 1,00,000 MW of power is envisaged to be added during 10th and 11th plans.Approximately Rs. 2,46,000 crore of proposed investments in the next five years is expected in these segments. Further, only nine per cent of Indian highways are four-laned. Average speed is less than 50 km/hr. There are very few airports considering the country's size. Top six airports account for 70 per cent of the air traffic, while a large number of airports are under utilised. Investment of approximately Rs.23,000 crore is planned in airports in the next five years. Further, investment of Rs.25, 000 crore is planned in ports in the next five years. The scheme will focus on investments in sectors which are expected to benefit from the increased spending on infrastructure facilities.

About Birla Sun Life Asset Management Company Limited Birla Sun Life Asset Management Company Ltd., since its inception in October 1994, has emerged as one of India's leading AMCs with over Rs.13,700 crore of assets under management and an investor base of around 6 lakh (as on 31 January 2006). It offers a range of comprehensive investment options which includes diversified and sector specific equity schemes, hybrid funds and a wide range of debt and treasury products.

For more information please contact:
Mr. Ravi Sharma
Vice President - Marketing and Retail Sales
Tel: 5692 8052 (Direct), 5692 8000 (Board)
Mobile: 9820033339
Fax: 5692 8110 / 5692 8111