Sun F&C to launch new balanced fund scheme

MUMBAI, DECEMBER 1: Sun F & C Asset Management has announced plans to launch an open-ended balanced fund with exposure in equity and debt instruments on December 9. "The new fund will invest 60 per cent of its corpus in equity and 40 per cent in debt…. The scheme will cater to needs of investors who want to strike a balance between growth prospects that equities offer and the comparative safety of debt instruments," the firm said in a statement.

"It will be an open-ended income-cum-growth scheme with the objective of generating long-term capital appreciation and current income from a portfolio mix of equity/equity related securities and debt securities."The fund will mainly be targeted at retail investors and will be offered at Rs 10 for cash at par with a minimum subscription amount of Rs 5,000. "The offer document allows us to invest up to 75 per cent of the fund’s corpus in equities. We will balance the portfolio depending on our view of the market," Sun F&C’s chief executive officer Nikhil Khattau told reporters.

The scheme, which will have a dividend plan and a growth plan, will have no entry or exit load for investors who invest during the initial public offering of the fund, he added.

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Khattau said the debt part of the fund will be invested in top-rated corporate debt and government securities.

Sun F&C Asset Management Company is a joint venture between Foreign & Colonial of Britain and SUN Securities (India) Pvt Ltd. Currently, Sun F&C manages two domestic and two off-shore mutual funds worth over Rs eight billion.