Birla Sun Life Mutual Fund - Special Situations Fund is a contrarian fund that will invest primarily Companies that would take advantage of Special Situations like potential gains from merger, acquisition, demerger, restructuring, divesting, buy backs, new funding etc.
The fund may also invest in companies that are currently out of favor, overlooked or ignored for poor results, product failures, factor affecting the industry, political interventions, etc.
The Fund house expects the special situations in India to raise in 2008 and provides the following statistics:
| Special Situations | 2003-2004 | 2006-2007 |
| M&A, PE Deals | 306 (49,200 crores) | 782 (1,12,800 crores) |
| Open Offers | 67 (1,921crores) | 90 (15,127 crores) |
| Delistings | 3 (956 crores) | 25 (983 crores) |
| Primary Market activities (IPOs) | 19 (3,191 crores) | 76 (23,706 crores) |
Sources: Dealtracker Grant Thornton (www.gt-india.com), www.primedatabase.com
I personally feel that, since Contrarian funds have not given very good returns in the recent past, Investors shall invest on existing proven diversified equity funds or theme based funds, insead of this New Fund.
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Posted in Birla Sun Life Special Situations, Economy, Finance, India, Investments, Mutual Fund, Stock Market
