Saturday, January 30, 2010

Sundaram BNP Paribas MIP - Conservative & Aggressive Plan Floats On

NFO Period from 25 January to 23 February 2010 

Sundaram BNP Paribas Mutual Fund has launched a new fund named as Sundaram BNP Paribas Monthly Income Plan (MIP) – Conservative & Aggressive Plans, an open ended income scheme. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue is open for subscription from 25 January 2010 and closes on 23 February 2010. 

The primary objective of the scheme is to generate regular income through investments in fixed income securities and the secondary objective is to generate long term capital appreciation by investing a portion of the scheme's assets in equity and equity related instruments.

Both the growth and dividend options are available under the plans. Dividend option shall offer dividend payout & dividend reinvestment. Under dividend option monthly, quarterly and half yearly sub options are available.

For Conservative Plan, the fund would allocate 90% to 100% of assets in government securities with low risk profile. It would allocate 90% to 100% of assets in debt securities, money market instruments & cash (including money at call, other than securitized debt) with low to medium risk profile. It would further allocate up to 10% of assets in equity & equity related securities with medium to high risk profile. Investment in Securitized Debt will be upto 75% of the net assets of the Plan.

For Aggressive Plan, the fund would allocate 70% to 100% of assets in government securities with low risk profile. It would allocate 70% to 100% of assets in debt securities, money market instruments & cash (including money at call, other than securitized debt) with low to medium risk profile. It would further allocate up to 30% of assets in equity & equity related securities with medium to high risk profile. Investment in Securitized Debt will be upto 70% of the net assets of the Plan.

Minimum Application Amount for all first time purchases is Rs 5,000/- and in multiples of Re 1/-. For all subsequent purchases, the application must be for a minimum amount of Rs 500 and multiples of Re 1/-.

The fund seeks to collect a minimum subscription (minimum target) amount of Rs 1 crore under each plan during the NFO period.

Entry load charge will be nil for the scheme. The scheme will charge an exit load of 1%, for redemption within 12 months from the date of allotment and nil, for redemption on or after 12 months from the date of allotment. 

There will be no Entry and Exit Load in respect of bonus units and of units allotted on reinvestment of dividend.

The scheme has been benchmarked against CRISIL MIP Blended Index.

The scheme would be managed by K Ramkumar (for Debt Portfolio) & Satish Ramanathan (for Equity Portfolio).