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Thursday, July 30, 2009

SBI MF waits Sebi approval to launch SBI PSU Fund

Exposure will be in listed PSU companies

SBI Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch SBI PSU Fund, an open ended equity scheme. The face value of the new issue will be Rs 10 per unit.

The objective of the scheme is to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks of domestic Public Sector Undertakings and in debt and money market instruments issued by PSUs and others.

The scheme offers growth and dividend option. Under the dividend option, facility for payout and reinvestment of dividend is available.

The minimum application amount is Rs 5000 and in multiples of Re 1 thereafter.

The scheme seeks to collect a minimum corpus of Rs 100 crore during NFO period.

The scheme will invest of 65-100% in equity and equity related instruments covered under the universe of listed PSU Companies including derivatives with medium to high risk profile. It will have investment up to 35% in debt and money market securities with low to medium risk profile.

The scheme will not charge entry load during NFO as well as ongoing basis.

For investments below Rs. 5 crore, exit between 12 months from the date of allotment, the scheme may levy exit load of 2% and for investments below Rs. 5 crore, exit after 12 months from the date of allotment, 1% will be the exit load. While no exit load for investments of 5 crore and above.

The performance of the scheme is set as BSE PSU Index.

Rama Iyer Srinivasan will manage the scheme.

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