New Fund from Birla Sun Life targeting traditional investors

Birla Sun Life Mutual Fund (BSLMF) has launched BSL Capital Protection Oriented Fund Series 1, which offers those investing in traditional investment options like fixed deposits, an attractive alternative. This is a 27-month close-ended fund which seeks capital protection by investing into high quality debt securities maturing in line with the tenure of the scheme and seeking capital appreciation by investing a part of the capital in equity market.

Mr. A Balasubramanian, CEO, BSLAMC, said, “Given that today investors in India have over Rs 37 lakh crores in FDs, BSL CPOF Series 1 offers us an opportunity to provide these Investors an alternative investment avenue. Investors with safety on their mind and with a time horizon of 2-3 years are our target audience”. “The fund intends to invest 90% of the capital on the debt side in high quality debt instruments. The rest 10% of the capital shall be invested in the equity side and shall comprise of high growth stocks. Basically, the fund offers investors an opportunity to invest a small portion of their portfolio in equity market with low risk,” he said

BSL CPOF Series 1, has been rated AAA(so) by CRISIL. The fund offers growth option only with minimum application amount of Rs 5,000 and multiples of Rs 10 thereafter during the new fund offer period. Non-Resident Indians (NRIs), Foreign Institutional Investors (FIIs) and Person of Indian Origins (PIOs) are eligible to invest in the scheme on a full repatriation basis. Benchmarked against CRISIL MIP Blended Index, the fund has no entry and exit load. It shall be open for subscription till 5th March 2010

The redemption of units shall be allowed only at the maturity of the scheme. However, the fund shall be listed on stock exchanges, and investors can buy sell units of the fund there.