Sundaram BNP To Unveil Two Schemes

Mumbai: Fund house Sundaram BNP Paribas has decided to roll out new fund offers for its two close-ended equity schemes - Equity Multiplier Fund and Small Cap Fun - and expects to mop up around Rs 800 crore in the New Year. Sundaram BNP sees opportunity in investing into small-cap companies, through its Small Cap Fund. The fund would have a tenure of five years and invest more than 65 per cent into equity and equity-related securities, while exposure to other equities, fixed income and money market securities would be below 35 per cent. The scheme, with minimum investment of Rs 5,000 would be benchmarked against the BSE Small Cap Index and has no entry load, while the exit load would be three per cent up to 12 months of investments and narrow down later. The MF aims to collect around Rs 300 crore through the scheme. Stocks with market capitalisation of less than Rs 5,000 crore would be qualifying for the investment portfolio of the scheme. Similar to the Small Cap Fund, the Equity Multiplier Fund would be maintaining its debt-equity exposure at 65-35 per cent level. The close-ended fund would be converted into a open-ended fund after three years.