A close ended Capital Protection Oriented Hybrid Debt Scheme
Sundaram BNP Paribas Mutual Fund has filed an offer document with
Securities and Exchange Board of India (SEBI) to launch Sundaram BNP
Paribas Capital Protection Oriented Fund Series 2-3 Years, a close
ended capital protection oriented hybrid debt scheme. The new fund
offer (NFO) price for the scheme is Rs.10 per unit.
The objective of this scheme would be to seek income and minimise risk
of capital loss by investing in a portfolio of fixed-income securities.
Plans: Retail, Institutional and Super Institutional
Options: The scheme offers growth option only.
The scheme will invest 78-100% of its net assets in fixed-income
securities including money market instruments, if any and 0-22% in
equity and equity related instruments. Exposure to securitised debt
shall not exceed 50% of the limit indicated for fixed income and money
market instruments. Exposure to derivatives will be limited to 50% of
the net asset value of the scheme at the time of transaction. Exposure
is calculated as the notional value as a percentage of net assets of
the scheme. The exposure in derivatives will be on Gross basis, i.e.
taking into account long and short positions separately. The scheme
will maintain cash or securities to cover exposure to derivatives.
Minimum subscription amount:
Retail Plan: Rs 5,000 and in multiples of Re 1 thereafter per application.
Institutional Plan: Rs 1 lakh and in multiple of Re 1 thereafter per application
Super Institutional Plan: Rs 5 lac and in multiple of Re 1 thereafter per application.
The Fund aims to collect a minimum subscription of Rs.1 crore.
The scheme's performance will be benchmarked against Crisil MIP Blended Index.
Rahul Pal is the fund manager for debt portion and S. Krishnakumar is the fund manager for equity portion of the scheme.