SBI Mutual launches capital protection fund

Our Bureau Mumbai | Updated on February 16, 2011

Mr Deepak Chatterjee (left), Managing Director, SBI MutualFund, and Mr Navneet Munot, Chief Investment Officer, at apress conference of the SBI Mutual Fund launch ‘CapitalProtection Oriented Fund Series-II’ in Mumbai on Wednesday.— Shashi Ashiwal

SBI Funds Management launched a five-year close-ended SBI capital-protection-oriented fund series-II aiming at providing investors opportunities for long-term growth in capital.

The new fund offer for the product will open on February 18 and close on March 4. The units would be allotted on March 11.

At a press meet organised by the fund house, Mr Navneet Munot, Chief Investment Officer, SBI Mutual Fund, said:

“While the equity part of the fund will be managed actively, the scheme shall follow a passive investment strategy for the fixed income component.”

The fund will invest a minimum of 74 per cent of its corpus in debt and money-market instruments and a maximum of 26 per cent in equity and equity-related instruments. The minimum initial investment is of Rs 5,000 and in multiples of Re 1 thereafter.

It will not have an entry or exit load, while the net asset value (NAV) will be disclosed on a daily basis.

In the equity component, there is a cap of 10 per cent on single stock, Mr Munot said, adding currently the fund house is bullish on scrips from the consumption oriented, healthcare and IT sectors.

Published on February 16, 2011

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