Sahara Mutual Funds launches 8th equity fund

Lucknow, July 29 (UNI) Sahara Mutual Fund today announced the launch of its new scheme ''Sahara Banking&Financial Services Fund'' which will close for initial subscription on August 26.

The New Fund Offer (NFO), which was opened yesterday, is available for subscription at Rs 10 per unit (plus applicable loads) and the minimum application amount is Rs 5,000.

The investors have two options -- Dividend and Growth -- under the scheme, in which the Dividend option includes re-investment option.

Announcing the launch at Sahara Shaher in Gomti nagar area here, the Sahara Mutual Fund Chief Executive Officer Naresh Kumar Garg said, ''Indian economy is well on its path to become one of the largest economies in the world. The investments in the economy have been growing at fast pace and the sound banking and financial system of the country is proving to be the catalyst in forging the high GDP growth rate for India.'' ''Capitalising on this oportunity and also considering the attractive valuation at which the banking and financial services sector stocks are available presently, Sahara Mutual Fund's new scheme would benefit all its investors,'' he added.

The NFO is an open-ended sectoral growth fund with the objective to generate long-term capital appreciation through investments in equity and equity-related securities of the companies that are in Banking and Financial Services segment.

At least 75 per cent of the total assets will be invested in equity and equity related securities, however, up to a maximum of 25 per cent will be invested in debt and money market instruments.

This is Sahara's eight equity funds among the others namely Sahara Tax Gain Fund, Sahara Growth Fund, Sahara Mid Cap Fund, Sahara Wealth Plus Fund, Sahara Infrastructure Fund, Sahara REAL Fund (close ended), Sahara Power and Natural Resources Fund and six debt funds.

All these funds were performing remarkable well over various period even in the turbulent market conditions, Mr Garg asserted.

Talking about the present market senario, he said entire independence of RBI has proved good for our economy and banking and finance sectors will grow at fast pace in near future.

He further said markets have corrected over 40 per cent from the top, which is a strong case to invest, besides GDP growth indicates that equities still offering best investment vehicle for long-term investors. ''equity delivers best, if investors buys and holds it for long,'' he underlined.

On being asked about inflation rate, he said in United States price-hike in essential commodities has gone up five times. Lower middle class belt there is finding difficult to fetch their daily bread and butter.

In comparision, we are at a comfortable zone, he added.

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