New Delhi, Feb 14 (UNI) Aditya Birla group, a Birla Sun Life Asset Management Company, today launched a three-year close-ended fund, 'Birla Sun Life Pure value'.
The 85 per cent of the fund proceeds will be invested in equity of 40-45 stocks across different sectors.
The fund is aiming at sectors such as oil and gas, paper, shipping, fertilizers, cement and sugar industry. The rest 15 per cent will be invested in fixed income securities with the minimum investment fixed at Rs 5,000 in the multiples of Re 1 thereafter during the NFO period.
The fund is based on value investment style with the objective to generate long term growth of capital by investing in a portfolio of equity and equity related securities.The NFO for this close-ended diversified equity scheme opened on January 17, 2008 and closes on March 1, 2008.
''The value based investment is a classic concept, which acts as a shock absorber. The concept entails picking stocks that are excellent in business performance, high on earnings quality and economical on valuation coupled with a good management team,'' company's chief investment officer A Balasubramanian said.
The sharp corrections in the Indian market has dented investors confidence, so they need to understand that the value is created only by investing in the right businesses at the right time and giving sufficient time for these businesses to prosper, Mr Balasubramanian added.
The new fund offer price is Rs 10 per unit. The plans and options available include dividend (reinvestment/payout) and growth, default growth option/ reinvestment facility. The redemption will be in the multiples of Re 1. The benchmark index is BSE200.
Birla Sun Life Asset Mangement company has over Rs 31,000 crores of assets under management and an investor base of over 15 lakhs.
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