Sbi Mutual Set To Launch Income Scheme

SBI Mutual Fund is set to launch a monthly income scheme, called the Magnum Monthly Income Scheme 1997, on April 17, 1997.

The scheme assures a return of 15 per cent per year for the first year.

It has a tenure of six years, which is extendable by another year. While at least 80 per cent of the schemes corpus will be invested in low-risk debt instruments, the balance will be invested in equity and money market instruments.

Returns for the first year will be paid through 10 post-dated warrants and the asset management company guarantees the return of 15 per cent. The scheme thus gives an annualised return of 16.05 per cent. An AMC release said investors have the twin option of availing repurchase facility at NAV-related prices or switchover to SBI Mutuals Magnum Open Fund 95.