Sun F&C Asset Management, the joint venture between Foreign & Colonial and Sun Securities, has launched its second domestic open-ended scheme_-Sun F&C Money Value Fund_-a fixed income scheme, on October 26.
Sun F&C Asset Management has fixed a conservative target of Rs five crore to be mopped up from the scheme.
The scheme, which has a liquid option for short term investments and a bond option for longer investments, will be open until November 9.
It is eligible for capital gains tax exemptions under section 54EA/54EB of the Income Tax Act.
The Sun F&C Asset Management scheme has no initial load.
This means investors will receive full value for their investments and subsequent subscriptions and redemptions will also be on a no-load basis.
Further, since there is no lock-in period, investors can enter and exit the fund as and when they choose.
Sun F&C Asset Management chief executive officer Nikhil Khattau said: "The scheme is ideal for investors looking for fixed income returns and are looking for both short-term and longer term investments."
On the fund's strategy to enter the market at a predominantly bearish scenario, the Sun F&C Asset Management chief executive officer expressed cautious optimism stating that his rationale for the fund to mop up Rs 5 crore is a realistic target given the present market sentiment.
The company's first fund_-Sun F&C Value Fund has appreciated by 11.52 per cent (net asset value as at September 1998 is Rs 12.39) and has out performed the BSE 200 Index by 13.18 per cent over the last quarter, the company said.
