The Hindu Business Line : SBI Mutual to launch new scheme focussing on emerging sectors

SBI Mutual Fund will launch a new scheme next month to invest in emerging sectors such as business process outsourcing, auto ancillaries and biotechnology, a top company official has said.

"We are launching in August an `Emerging Sector Fund', which will invest in equity of companies in these areas," said Mr P.G.R. Prasad, Managing Director of SBI Funds Management Pvt Ltd, here at a press conference.

He said the new scheme has received necessary approvals from the Securities and Exchange Board of India. "We hope this scheme will get investments of Rs 100 crore in the initial period," Mr Prasad said.

Earlier, Mr Prasad signed a Memorandum of Understanding with Mr K.P. Padmakumar, Chairman of Federal Bank for a tie-up, under which the bank will distribute SBI mutual fund products.

"The tax benefits for NRI investments are no longer there and now is an opportune time for attracting investments into mutual funds in Kerala," Mr Prasad pointed out.

He said the new age private sector banks have become a deciding factor in distribution of mutual funds in the country with as much as 60 per cent of mutual fund distribution coming through this channel.

Federal Bank's select staff will be given training to sell the SBI mutual fund products, now available in 19 schemes covering low, medium and high risk profiles.

SBI and its associate banks are already selling the products through 600 branches.