4:41 pm
Jack
Birla Sun Life Mutual Fund has launched Birla Sun Life Capital Protection Oriented Fund – Series 7, a close ended capital protection oriented fund with the duration of 36 months from the date of allotment of units. This scheme has been rated CARE AAAmfs (SO) by CARE.
The new issue is open for subscription from 15 September and closes on 29 September 2011. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit.
The investment objective is to provide capital appreciation linked to equity market with downside protection at the end of tenure. The fund expects to achieve down side protection by investing in debt securities with tenure comparable with the tenure of the plan, subject to the credit risk. Fund expects to achieve the market-linked appreciation (upside) by investing in premium of exchange traded options.
The Fund proposes to restrict its derivative exposure only to the extent of buying of call options. Hence the maximum loss could be equivalent to the premium paid, not any more. Moreover, the premium paid will be equal or lower to the coupon receivable from fixed income securities after providing for fund expenses.
The fund offer only growth option.
The minimum application amount is Rs 5000 and in multiples of Rs 10 thereafter.
Entry and exit load charge will be nil. No redemption/repurchase of units shall be allowed prior to the maturity of the fund, Investors wishing to exit may do so through stock exchange mode.
The fund would allocate 80% to 100% of assets in debt securities and money market instruments and up to 20% of assets in options premium with high risk profile, but limited to the premium paid.
Benchmark Index for the fund will be CRISIL Balanced Fund Index.
The fund manager for the fund will be Satyabrata Mohanty and Ajay Garg.
