SBI Mutual Fund launches New Close Ended Scheme
07/07/2015 09:59

SBI Mutual Fund has launched a new close ended debt scheme named “SBI DEBT FUND SERIES B - 21 (1100 DAYS)” with maturity period of 1100 days from the date of allotment.

The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The NFO opened for subscription on July 07 and will close on July 08.

According to the offer document filed with SEBI, the entry load is not applicable and since the scheme is planned to be listed on the Stock Exchange or any other exchange, the exit load charge will be also not applicable. This suggests that the investors wishing to exit may do so through the stock exchange mode.

The minimum application amount is Rs 5,000 and in multiples of Rs 1 thereafter. The options available under the plan of the scheme are Growth and Dividend option.

The performance of the scheme will be benchmarked against CRISIL Short Term Bond Fund Index. Rajeev Radhakrishnan will be the fund manager of the scheme.

The asset allocation of the scheme will be in such a way that the objective of the scheme to provide regular income and capital growth with limited interest rate risk to the investors will be met by investing in a portfolio comprising of debt instruments such as Government Securities, PSU & Corporate Bonds and Money Market Instruments maturing on or before the maturity of the scheme. Hence, the scheme will allocate 60 to 100 per cent of asset in Debt and 0 to 40 per cent of asset in Money Market Securities.