SBI Mutual Fund targets Rs 12 crore in Orissa from GETS

The SBI Mutual Fund, the leading fund house of the country, expects to mobilise Rs 12 crore from Orissa for its newly launched SBI Gold Exchange Traded Scheme (GETS). It targets to mobilise about Rs 70 crore in the east and Rs 200 nationally from this scheme.

“ We hope to mobilise about Rs 12 crore in Orissa for the GETS and Rs 70 crore in the east”, Manoj Kumar Sinha, zonal head, SBI Fund Management Private Ltd. told Business Standard.

Sinha said, though the people were investing in gold physically, they were not investing through GETS, incurring additional costs in the process. The potential investors can diversify their investment and invest efficiently through this scheme. The new fund offer (NFO) for GETS will close on 28 April 2009. Launching of the GETS was significant as the company didn’t have this product in its product basket.

The minimum investment will be Rs 5000 and there is no upper limit. It will focus on the retail and the High Networth Individuals (HNIs) for mobilisation of the targeted funds. One month after the closing, the fund will be listed in the National Stock Exchange.

Orissa was one among the best performing regions of the company and net business during the last fiscal in the state was about Rs 400 crore. In terms of asset under management (AMU), SBI Mutual Fund enjoys a market share of 25 percent, he added.

Chittaranjan Panda, chief manager, Bhubaneswar said, the company intended to penetrate more areas in the state. Though it has network expansion plan, it is yet to be finalised. The company has 2 branches at Rourkela and Bhubaneswar and 6 districts are covered through business associates.