Sundaram BNP Paribas MF launches PSU Opportunities Fund

The investment objective of the scheme is to seek capital appreciation by investing in equity and equity-related securities of public sector companies to the extent of at least 65%. The fund may also invest in bonds and other fixed-income instruments issued by public sector entities. Under normal circumstances, cash may be deployed in fixed income and money market instruments. Exposure to overseas securities shall not exceed 35% of assets and shall be only related to the theme.

The new fund offer (NFO) opens for subscription on November 25, 2009 to December 23, 2009.

The scheme offers growth and dividend option. Dividend option offers dividend payout and dividend re-investment facilities.

The minimum application amount for all first time purchase is Rs 5,000/- and multiples of Re 1/-. For all subsequent purchases, the application must be a minimum amount of Rs 500/- and multiples of Re. 1/-. In the case of purchases through SIP, the minimum instalment amount shall be Rs 750 and Rs 250 respectively for quarterly and monthly frequency respectively and in multiples of Re 1/-. SIP facility shall be available from the date on which the scheme is opened for subscription and redemption on an ongoing basis.

Entry load - Nil. Exit load of 1% for redemptions within 12 months from the date of allotment.

The scheme will invest 65-100% of assets in equity & equity-related instruments in the targeted theme and 0-35% in equity & equity-related instruments other than the targeted theme. It would also invest 0-35% in fixed income/money market instruments. Investment in equity & equity-related instruments other than the targeted sector/theme will be in Indian securities and large-cap stocks from S&P CNX Nifty.

The scheme's performance would be benchmarked against CNX PSU Index.

The fund managers of the scheme will be J.Venkatesan and S. Bharath.

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