SBI Mutual Fund launches Capital Protection Oriented Fund Series - I

SBI Mutual Fund has launched a close-ended equity fund called ‘Capital Protection Oriented Fund Series - I’. It will have a maturity period of 5 years, after which it will be converted into an open-ended fund. The new fund offer will be open between October 5, 2007 and November 2, 2007.

The scheme endeavours to protect the capital invested through focused investments in debt and money market instruments as well as equity while at the same time also seeking to provide investors with opportunities for long-term growth in capital.

Around 73-100 per cent of investments would be allocated to Debt Securities & Money market instruments. Securitized Debt (which is part of the above asset allocation) in the portfolio would be upto 20 per cent. Equity and Equity related instruments including derivatives will be upto 27%.

The investment strategy will be to Debt Investments will be in Government Securities and in securities having the highest investment grade rating. Investments in debt securities in the scheme will be largely limited to those having maturities not exceeding the residual maturity of the scheme. The scheme will invest in fixed debt instruments only. Equity investments will be in stocks listed on NSE and BSE having a market capitalization equal to or higher than the market capitalisation of the least market capitalised stock of the BSE 100 Index. The equity component will have minimum of 10 stocks.

Crisil has assigned “AAA(so)” rating for SBI Capital Protection Oriented Fund – Series I.

Disclaimer clause – “The rating only indicates highest degree of certainty regarding payment of face value of investment to the unit holders on maturity and is not an opinion on the stability of the scheme’s NAV before its maturity date.”


Snapshot
Face value: Rs 10
Type: Close-end
Options: Growth. The returns to investors in this option would be through capital appreciation only.
Minimum application amount: Rs 5000
Entry load: Nil
Exit load: Nil and the money is locked for 5 years
Benchmark index: CRISIL MIP Blended Index