We are pleased to provide you an opportunity to invest in Blended Debt Plus – Hybrid Option (XVII) – an Equity Linked Debenture Scheme launched by Reliance PMS. This product is ideally suited for investors who would like to capture the potential upside of equity markets to an extent while limiting the downside risk. It actively seeks to generate superior risk adjusted returns and capital appreciation for the in
Product Overview:
The investors are offered an opportunity to participate on the upside of NIFTY, while limiting them from a potential downside. The portfolio will consist of Non Convertible Debentures (NCDs), where the return will be calculated as the participation of positive differential between the NIFTY levels on the deployment data and the average of ending NIFTY levels on the index return observation dates. The benchmark performance on the upside will be capped at a knockout barrier of 145%, which if triggered would have a knockout barrier payoff of 24% (Absolute returns) only. If the differential is negative, that is, the initial level is higher than the NIFTY level arrived by averaging the index return observation dates, then the investor will get only the principal invested. The NCDs will be issued by entity / entities, which have a reputed standing in the capital markets.
Product Features:
| Particulars | Details |
| Rating | AA+ |
| Tenor | 24/27 months |
| Minimum Investment (Rs) | 20,00,000 |
| In Multiples of (Rs) | 10,00,000 |
| Issue opening date | 27th October 2010 |
| Issue closing date | 22nd November 2010 |
| Face Value of Debenture (Rs) | 1,00,000 |
| Issue Price of Debenture (Rs) | 97,500 |
| Reference Index | S&P CNX Nifty |
| Barrier Observation Dates | Futures expiry date of each month starting from the end of 1st month – typically last Thursday of every month |
| Index Return Observation Dates | Closing level of barrier observation dates from 19th to 24th month |
| Participation Ratio (PR) | 100% |
| Knockout Barrier | 145% of the Start Index Level |
| Knockout Barrier Payoff | 24% (Absolute Returns) |
| Index Linked Return (%) | Max (0, (Closing Index Level/Start Index Level - 1)*100) |
| Structure Payoff (%) | (Principal + (Knockout Barrier Payoff, if Knockout Barrier Triggered; Else, Index Linked Return) |
| Start Index Level | Official closing level of S&P CNX Nifty on the deployment date |
| Closing Index Level | Average of closing levels of S&P CNX Nifty on the Index Return Observation Dates from 19th to 24thMonth |
#4 | 2nd Floor | Khaitan Chambers | Modi Street |Mumbai.
(022 – 30268502 | Mobile: (+91) 9769733071 | 7 Fax 022- 30268500
* abhijit@sprism.in | website: www.sprisminvest.com
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