SBI Mutual Fund's Infra Fund to open on May 11

Bangalore, May 10: A new series of Infrastructure Fund will hit the market tomorrow with the SBI Mutual Fund floating a three year close ended growth fund to mop up around Rs 1500 crore.

Briefing newsmen on the highlights of the fund, SBI Infrastructure Fund-Series I, SBI Mutual Fund Managing Director and CEO Syed Shahabuddin and Chief Investment Officer N Sethuraman Iyer said that the fund would be invested in about 30 to 45 companies.

The investment would be completed in about three months from the date of close, they said adding that out of a portfolio of 250 companies, around 100 companies have the credentials for investment from the fund.

Irrespective the size of the company the investment would be made, Mr Iyer said adding that the opportunities were tremendous. He did not rule out the possibility of the second Fund in the series being offered later this year in view of the huge demand.

The fund would close on June eight and would be reopen for continuous repurchase on July six.

Mr Iyer said that the demand for funds by the sector is huge and according to government estimates the spending on various infrastructure sectors would be to the tune of 320 billion dollars till the end of 2012.

Mr Shahabuddin said atleast three infrastructure Funds were currently operated in the market with the total fund size being around Rs.5,000 crore.

The Fund would invest a minimum of 65 per cent in equity/equity related instruments, including derivatives and the balance was proposed to be invested in amixture of debt and money market instruments whose performance had been bench marked to BSE 100 index.

UNI