SBI Mutual Fund plans to rake in more than Rs 1,000 crore through its new open ended equity fund, SBI PSU Fund. The New Fund Offer opened today and will close on June 14.
The scheme will invest in stocks of domestic public sector undertakings. The investment objective of the fund is to provide long term growth in capital. The scheme will invest a maximum of 35 per cent of its corpus in debt and money market securities. And a minimum of 65 per cent in equity and equity-related instruments covered under the universe of listed PSU companies.
The fund will be benchmarked against the BSE PSU index. The NFO price for the scheme is Rs 10 a unit. "PSUs have strong fundamentals and are available at attractive valuations compared to broader markets.
There may arise several divestment opportunities, which will lead to unlocking of value in these companies", said Mr. Navneet Munot, Chief Investment Officer, at SBI Funds Management.
The investment will be through primary as well as secondary market, private placements, QIP, preferential and firm allotments from time to time.
The minimum investment in the fund if Rs 5,000 and in multiples of Re 1 thereafter. An exit load of one per cent will be applicable if an investor exits the scheme within three years.
Source: http://www.thehindubusinessline.com/2010/05/18/stories/2010051852741301.htm
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