SBI Mutual Fund launches SBI Capital Protection Oriented Fund Series III
- NFO opens on September 15 and Closes on September 29th 2011
- Maximum equity exposure 18%
- The fund will be listed on BSE.
SBI Mutual Fund, one of India’s largest mutual funds house has launched Capital Oriented Fund Series III. This is a 3 Year Close – Ended Capital Protection Oriented Fund. The NFO period is from 15th September 2011 - 29th September 2011.
The primary objective of the scheme is to protect the capital invested on maturity of the scheme through focused investments in equity, debt and money market instruments at the same time also seeking to provide investors with opportunities for long-term growth in capital.
Investment in debt will be in Government Securities and securities rated AAA. The equity investment will be in stock listed on NSE and BSE having a market cap equal to or higher than the market cap of the least market capitalized stock of the BSE 100 Index.
Fund combines investment avenues and caters to the prime requirement of all the Indian investors who want returns along with the capital protection. All investors who invest significant part of their saving in “safe instruments” like bank‘s fixed deposits, PPF and NSC will also have an exposure to equity market. The investment in debt will be between 82-100% and equity will be from 0-18%.
Mr. Deepak Chatterjee, Managing Director, SBI Mutual Fund said, “In an uncertain market scenario, investors rely on trust and proven performance of fund house like SBI Mutual Fund. The SBI Capital Protection Oriented Fund-Series III provides an opportunity to investors to invest in the equity market with a strategic equity exposure, blended along with the protection of Capital. The orientation towards protection of the capital originates from the portfolio structure of the scheme, and not from any bank guarantee or insurance cover. The scheme has been rated an {AAA (ind)(SO) (exp)} by Fitch and we are confident that risk averse investors will surely benefit on long term basis, by investing in this scheme.”
Mr. Navneet Munot, Chief Investment Officer also added saying, “The portfolio is constructed in such a way that a large portion of investment is invested in fixed income component to ensure capital protection at maturity while the residual part of is invested in equity markets to generate alpha.”
Asset Allocation: Debt and debt related instruments & Money market instruments: 82-100%, Equity and equity related instruments including derivatives: 0-18%. The cumulative gross exposure through equity, debt and derivative positions will not exceed 100% of the net assets of the scheme. The scheme shall not invest in securitized debt.
Minimum Investment size: Rs. 5,000/- and in multiples of Re. 10/-.