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Escorts High Yield Equity Plan

This product is suitable for investors who are seeking* :

* Generate income & long term capital appreciation.

* Invest in equity and equity related instruments, which offer high dividend yield.

risk Investors understand that their principal
will be at moderately high risk.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them

Investment Objective

To generate income by investing predominantly in well diversified portfolio of equity stocks providing high dividend yield but at the same time capture long term capital appreciation as and when the opportunity arises. This long term style of investment tries to locate, in a disciplined manner, shares, which for a variety of reasons are selling at prices which are substantially lower than the company’s actual business value or future earnings potential, and are also yielding a higher than normal dividend yield. These companies would be backed by stable earnings in the past while offering fair growth potential in the future.

Basic Scheme Information

Nature of scheme An Open Ended Growth Scheme
Inception Date December, 2006
Option Plan/Direct Plan Existing Plan : Dividend Option, Growth Option, Bonus Option. Dividend Option offers Dividend payout & Dividend Re-investment facility.
  Direct Plan (w.e.f. 01 Jan 2013): Dividend Option, Growth Option. The Dividend Option Offers Dividend Payout & Dividend Reinvestment facility.
Entry Load Nil
Exit Load 1% for redemption within 365 days
Minimum Application Amount For new investor : Rs 1000 and any amount thereafter
For existing investors Rs 1000 and any amount thereafter
Minimum SIP Investment Rs 1000 and any amount thereafter
Lock in Period Nil
Redemption Proceeds Within 10 working days of the receipt of the redemption request at the authorised centre of Escorts Mutual Fund
Tax Benefit Investors are advised to refer to the details in the Statement of Additional Information and also independently refer to his tax advisor.
Recurring expenses First Rs 100 crores : 2.50%
Next Rs 300 crores : 2.25%
Next Rs 300 crores : 2.00%
Balance : 1.75%
Benchmark Index CNX 100
Dividend Policy The Trustee may decide and declare dividend at such rates, as it deems fit, subject to availability of distributable surplus (based on realised profit) from time to time.

Investment Pattern

The asset allocation under the respective Plans will be as follows:
Types of instruments Normal Allocation (% of Net Assets)
Equity shares & equity related instruments Approx. 65-100 (max)
Debt Instruments, Govt. Bonds, Money Market Instruments Approx 0-25
Securitised Debt Approx. 0-10
Units of other Mutual Fund scheme(s) Approx 0-5
Risk profile of the Scheme Mutual Fund investments are subject to market risks. Please read the SID carefully for details on risk factors before investment. Scheme specific risk factors are summarized below:
1. The Scheme’s investment portfolio will be concentrated in select companies across various sectors. This might lead to increased volatility in the movement of NAV.
2. Equity instruments by nature are volatile and prone to price fluctuations on a daily basis due to both, micro and macro factors. Trading volumes, settlement periods and transfer procedures may restrict liquidity of investments in equity and equity related securities. Different segments of the Indian financial markets have different settlement periods, and such periods may be extended significantly by unforeseen circumstances. The length of the settlement may affect the schemes in the event that the Scheme has to meet an inordinately large number of redemptions.
3. Derivatives products carry the credit risk (risk of default by counterparty), market risk (due to market movements) and liquidity risk (due to lack of liquidity in derivatives). No principal amount is exchanged. A notional principal amount is agreed upon for interest calculation purposes. Only the difference between the two rates is exchanged at agreed intervals or payment dates. When fixed interest rate amount is higher, the fixed rate payer pays the difference amount i.e. fixed interest rate amount minus the floating interest rate amount or vice-versa
Fund Manager:
Gaurav Balre (Debt)
Sanjeev Sharma (Equity)
Shamil Mehra (Equity)
Name of Trustee Company :
Escorts Investment Trust Ltd.
  Visit Us:

Premises No. 2/90, First Floor, Block - P, Connaught Circus, New Delhi - 110001.
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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
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