SBI Mutual Fund plans to raise over Rs 500 crore in 1998-99 to launch new schemes in the domestic markets.
We plan to introduce three or four schemes in 1998-99 and have targeted a minimum amount of Rs 500 crore from the retail investors, said Niamatullah, managing director of SBI Funds Management.
As part of the new schemes, SBI Fund will launch the countrys first domestic index fund with the NSE-50 (Nifty) as index. The fund is awaiting Sebi approval, he said.
The minimum amount targeted under the index fund would be Rs 10 crore and a maximum Rs 100 crore, he added.Apart from the index fund, SBI will also launch an open-ended income fund Magnum Income Fund in the coming fiscal, he said.
However, this fund is in the initial stage and no targeted amount has been fixed so far, he said.
SBI Mutual Fund yesterday launched its new scheme, Magnum Monthly Income Scheme, 1998-I (MMIS). SBI MF will make Magnum Multiplier-90 open-ended. In the MMIS, SBI has targeted a minimum collection of Rs 50 crore with a maximum target of Rs 300 crore. Niamatullah said MMIS will be an assured income scheme with dividend for all the five years.
The guaranteed return under the scheme is 12.5 per cent per annum which results into an annualised yield of 13.24 per cent.
The scheme will have four options monthly, quarterly, annual and cumulative income for the five year scheme.
The scheme also has a provision for exemption from capital gains tax under section 54-E-A if the funds are locked in for a minimum period of three years.
He said the closed ended scheme also provided easy liquidity for the investors through re-purchase option at net asset value (NAV) of the unit after one year. Out of the total portfolio under the scheme, over 80 per cent will be invested in corporate debt with a AA rating and above and the balance in equity, Niamtullah said.
