The Hindu Business Line : Fund Update

Sundaram BNP Paribas Mutual Fund plans to launch a close-ended equity scheme called Sundaram BNP Paribas Select Thematic Funds Energy Opportunities. The fund will have automatic conversion into an open-end scheme at the end of three years from allotment. The terms and conditions applicable to the scheme when it is converted into an open-ended scheme shall be announced 30 days prior to maturity date.

The fund seeks to provide investors with long term capital appreciation by investing in equity and equity related instruments of companies in the domestic market that predominantly focus on or benefit directly and indirectly from the opportunities and development in the energy sector.

Asset allocation: The fund will invest 65-100 per cent of the assets in equity and equity related instruments that fall within the primary theme and 0-35 per cent in equities outside the theme. Investments in money markets instruments such as treasury bills, CBLO, Reverse repo will be in the range of 0-15 per cent.

The fund will not charge any entry load during the NFO period. Exit load is nil. However exit load for redemption before maturity will be at applicable NAV after deducting proportionate unamortised expenses.

The fund will offer growth and dividend options. Minimum one time investment is Rs 5,000.The NFO opens on 12 November and closes on 11 December. The fund is managed by Mr Krishna Kumar and it’s benchmarked against BSE Oil and Gas Index.

Assets under management for Indian mutual funds reached an all-time high of Rs 5.6 trillion at the end of October 2007 according to a press release by CRISIL. The report stated that over Rs 800 billion has been added to the September AUM of Rs 4.8 trillion, a 17 per cent increase on a month-on-month basis. Reliance Mutual continued to be the largest fund house followed by ICICI Pru Mutual and UTI Mutual in the second and third spots respectively.

Tata Mutual Fund has collected Rs 2,200 crore from Tata Indo Global Infrastructure NFO whose subscription closed on October 17. The scheme received 4.3 lakh applications during the NFO period.

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