Mumbai: SBI Mutual Fund today announced the launch of its five year close-ended capital protection fund series two.
NFO Date: 18 February to 04 March 2011
Maturity: March 10 2016
Objective: The scheme aims to protect capital till the maturity of the scheme through focused investment in equity, debt and money market instruments and also provide investors with opportunities for long-term growth in capital. It does not, however, assure any guaranteed return.
Investment strategy: The equity portion of the fund will be actively managed. It will adopt a top down approach. Currently the fund is bullish on consumer discretionary, IT and Healthcare sectors. The debt part will be largely passive. Investments will be held till maturity in AAA rated bonds. It would exit from a bond if it is downgraded. The scheme will not invest more than 20% of portfolio in securities rated by ICRA which is the rating agency of the portfolio.
Asset Allocation
|
Instruments |
Indicative allocations (% of total assets) |
Risk Profile |
|
Debt & debt related instruments & money market instruments |
74% to 100% |
Medium to Low |
|
Equity and equity related instruments including derivatives |
0% to 26% |
High |
Benchmark: CRISIL MIP Blended Index
Target Investors:
1) Low to medium risk profile investors
2) HNIs
3) PFs, trusts, etc
4) First time investors in mutual funds
Distribution: It is targeting to cover 500 locations across India through its banking channel, 40,000 IFAs and national distributors.
Promotion: The NFO will be supported extensively through a media campaign involving outdoor, print and online.
Fund Managers: Rajeev Radhakrishnan (Debt) and R Srinivasan (Equity)
Minimum Application: Rs 5,000
Target Collections: Rs 200 crore
Exit load: Nil
SWP/SIP/STP: Not applicable
Listing: BSE
