The Hindu Business Line : SBI Mutual launches capital protection fund

Speaking at a meeting today, Mr S. Shahubuddin, Managing Director and CEO, SBI Mutual Fund, said, “This scheme is for those investors whose risk appetite is not high. As of now we only see a small percentage of people will to get into equity-related mutual funds, where as they’d rather go for the debt-related mutual funds.” This scheme promises to provide low volatility and high returns. This according to the fund house is the need of the hour. They promise the investors a return on equity even in negative situations; the investor will get their annualised returns. The return on equity on the five-year close-ended fund is approximately 9.25 per cent.

This scheme is aimed at those with a low to medium risk profile, high net worth individuals, corporate and institutions investing in fixed income products and first time mutual fund.

The main objective of the scheme is to protect the capital invested through focused investments in debt and money market instruments, as well as equity. The constitution of the scheme would be 73 per cent debt, with it being close-ended, and 27 per cent equity will be dynamic and the investor can invest in the BSE-100 stocks. “For the equity part of the scheme, we will look at stocks in the infrastructure, capital goods, cement and commodities sector as of now,” said Mr R.S. Srinivas Jain, Senior Vice-President, Chief Marketing Officer, SBI Funds Management Pvt. Ltd.

Total target for the scheme is estimated at Rs 300 crore, and depending on the success of the series they plan on continuing with the series, said the SBI representatives at a meeting.

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