SBI launches Infrastructure Fund

New Delhi, May 11 (UNI) Capitilising the boom in the infrastruture sector, State Bank of India (SBI) Mutual Fund today launched a three-year close-ended growth fund to invest in equity stocks of companies directly or indirectly involved in this sector.

''SBI Infrastructure Fund-Series I will harness the investment opportunity in the infrastructure sector,'' SBI Mutual Fund Head (Equity) Sanjay Sinha told reporters here.

The offer opens for subscription today and will close on June 8.

The scheme will have a minimum application of Rs 5,000 and in multiple of one rupee per application.

''In the next five to ten years, the infrastructure sector will see a tremendous growth,'' said Mr Sinha adding that ''there is proposed spending of over Rs 14 lakh crore in the infrastructre sector in the 11th five year plan.'' The fund will invest a minimum of 65 per cent in equity or equity-related instruments including derivatives.

The balance is proposed to be invested in a mixture of debt and money market instruments.

The scheme allows the investors to choose dividend and growth options, tax free dividends and automatic conversion into open-ended scheme on maturity.

Mr Sinha said, within each sector in the infrastructure space, individual stocks will be identified based on their present status and future earnings potential to provide investors with an optimum risk adjusted to long term return.

The size of portfolio will range 40-50 and engineering, metals, cement, banking, aviation are among the most promising sectors.

SBI Mutual Fund has a network of over 26 investor service centers, 28 investor service desks and 42 district organisers covering over 100 points of acceptance.

UNI