Sundaram MF launches Sundaram CPOFund 3 Years (Series 7)

Sundaram Mutual Fund launches Sundaram Capital Protection Oriented Fund 3 Years (Series 7), a closed ended debt scheme with an investment objective to seek income and minimise risk of capital loss by investing in a portfolio of fixed income minimise risk of capital loss by investing in a portfolio of fixed income securities. The scheme may invest a part of the assets in equity to seek capital appreciation.

The New Fund Offer (NFO) opens for subscription on December 7, 2011 and closes on December 19, 2011

The scheme offers dividend payout and growth option.

The scheme's portfolio structure has been rated as AAA (so) by CRISIL which indicates highest degree of certainty regarding payment of face value of the investment to unit holders.

The NFO is priced at Rs 10 per unit and minimum application amount is Rs 5000 and in multiples of Rs 1 thereafter. The fund seeks to collect a minimum subscription amount of Rs 20 crore under the scheme during the NFO period.

The scheme will allocate 80% to 100% of assets in fixed income securities including money market instruments with low to medium risk profile. It would further allocate up to 20% of assets in equity and equity related instruments with high risk profile. Exposure to derivatives will be limited to 50% of the net asset.

Entry and exit load charge will be nil for the scheme.

Benchmark Index for the scheme is CRISIL MIP Blended Index.

Dwijendra Srivastava will manage Debt portion and Equity portion will be managed by Srividhya Rajesh.