SBI Mutual Fund launches new scheme

Mumbai, Feb 16 (PTI) SBI Mutual Fund today launched afive-year close-ended capital protection scheme targeted atinvestors with a low-to-medium risk profile.

Under the scheme, Capital Protection Oriented FundSeries II, a minimum of 74 per cent of the corpus will beinvested in AAA rated debt instruments, while the balance willgo towards equity, SBI Mutual Fund Chief Investment OfficerNavneet Munot told reporters here.

"The current environment of volatility in equitymarkets and higher interest rates in fixed income make theproduct very timely. This is the best of both worlds (debt andequity) an investor can get," he added.

The scheme, which will be open between February 18 andMarch 11, entails protection of the principal while theinvestor also gets a chance to participate in equity markets,Munot said.

It will not have an entry or exit load, while the netasset value (NAV) will be disclosed on a daily basis. Theminimum initial investment in the scheme will be Rs 5,000.

In the equity component, there is a cap of 10 per centon single stock, Munot said, adding currently the fund houseis bullish on scrips from the consumption oriented, healthcareand IT sectors.