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Monday, June 22, 2009

Religare PSU Equity Fund seeks Sebi's approval

Investment exposure will be in PSUs

Religare Mutual Fund has filed offer document with Securities and Exchange Board of India (Sebi) to launch new fund named as Religare PSU Equity Fund, an open-ended PSU Sector fund. Each unit will have a face value of Rs.10 each.

Details of the Religare PSU Equity Fund:

The scheme seeks to generate capital appreciation by investing in equity and equity related instruments of companies where the Central / State Government has majority shareholding or the management control is vested with the Central / State government.

The scheme offers growth and dividend options. Dividend option will have further dividend reinvestment and payout facilities.

The minimum application amount will be Rs 5000 and in multiple of Re 1 thereafter.

The scheme seeks to collect a minimum corpus of Rs 10 crore during NFO period.

Asset allocation: The scheme will invest 90-100% in equity & equity related instruments of the constituents of BSE PSU Index with high risk profile. The fund will be having investment exposure up to 35% in equity & equity related instruments of PSU companies other than the constituents of the BSE PSU Index with high risk profile. Investment in equity & equity related instruments of non PSU companies will be up to 20% with high risk. The scheme will invest up to 35% in debt & money market instruments with low to medium risk profile.

Non PSU companies are considered as companies which are PSU at the time of investment and which may subsequently become non PSU because of privatization or disinvestment. Investment in securitized debt including pass through certificate (PTC) shall not exceed 20% of the net assets of the Scheme. The scheme will not invest in foreign securitized debt.

Load structure during NFO period: The scheme will not charge entry load for application not routed through any distributor/agent/broker: While application routed through any distributor/agent/broker, the scheme will ask 2.25% entry load in respect of each purchase / switch-in of units less than Rs. 5 crore in value and nil for In respect of each purchase / switch-in of units equal to or greater than Rs. 5 crore in value.

In respect of each purchase / switch-in of units less than Rs. 5 crore in value, an exit load of 1% is payable, if units are redeemed / switched-out within 6 months from the date of allotment and in respect for each purchase / switch-in of units equal to or greater than Rs 5 crore in value no exit load is payable.

Benchmark index: The performance of the scheme is being benchmarked to BSE PSU Index.

Fund manager: Gautam Kaul is the fund manager for the scheme.

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