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Tuesday, May 27, 2014

Birla Sun Life Corporate Bond Fund – Plan A to E files offer document with Sebi

An open ended income scheme with Plan A, Plan B, Plan C, Plan D and Plan E 

 Birla Sun Life Mutual Fund has filed offer document with Sebi to launch Birla Sun Life Corporate Bond Fund – Plan A to E, an open ended income scheme with Plan A, Plan B, Plan C, Plan D and Plan E. The New Fund Offer price is Rs 10 per unit. 


Investment objective: The investment objective of the scheme is to generate returns by predominantly investing in a portfolio of corporate debt securities.

Options/plans: Options under each regular plan and direct plan will be:

Plan A: Quarterly dividend option (payout & reinvestment facility), dividend option (payout & reinvestment facility) and growth option

Plan B, Plan C, Plan D and Plan E (each): Dividend option (payout & reinvestment facility) and growth option

Benchmark:

Birla Sun Life Corporate Bond Fund-Plan A CRISIL Short Term Bond Index
Birla Sun Life Corporate Bond Fund-Plan B CRISIL AA Short Term Bond Index
Birla Sun Life Corporate Bond Fund-Plan C CRISIL AA Long Term Bond Index
Birla Sun Life Corporate Bond Fund-Plan D CRISIL AA Long Term Bond Index
Birla Sun Life Corporate Bond Fund-Plan E CRISIL AA Long Term Bond Index

Entry Load: Nil

Exit Load (as a % of applicable NAV) under the schemes would be in line with target horizon of the respective scheme as below:

Residual Target Horizon Exit load

 Plan A Plan B Plan C, D, E
4+ years - - 5%
3-4 years - 4% 4%
2-3 years - 3% 3%
1.5-2 years - 2% 2%
1-1.5 years 2% 2% 2%
1 year 1% 1% 1% 

Upon completion of the each Target Horizon, the existing unit-holders under the respective Scheme shall be able to redeem / switch their investments without payment of any exit load for a period of 30 days.

Minimum Application Amount: Rs.5,000 and in multiples of Re 1 thereafter.

Minimum Target Amount: Rs 10 crore unde reach plan

Asset Allocation:

For Plan A and Plan B: The scheme shall invest up to 100% in corporate debt securities* and money market instruments excluding government securities and State Developmental Loans.

For Plan C, Plan D and Plan E: The scheme shall invest up to 100% in corporate debt securities excluding government securities and State Developmental Loans * and 50-100% in money market instruments.

*For the purpose of this scheme, corporate debt securities shall mean non-convertible debt securities, including debentures, bonds and such other securities of a company or a body corporate constituted by or under a Central or State Act, whether constituting a charge on the assets of the company or body corporate or not, but does not include debt securities issued by Government.

The scheme shall not invest in Government Securities and State Developmental Loans but may invest in money market instruments including T-Bills, Repo, and Reverse Repos & CBLO within the limits mentioned in asset allocation pattern.

The scheme may also invest up to 50% of the net assets in securitized debt instruments except foreign securitized debt.

Fund Managers: Sunaina da Cunha and Lokesh Mallya
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