Friday, March 14, 2008

SBI MF To Launch Real Estate Equity Fund

The SBI Mutual Fund has filed the offer document with the Securities and Exchange Board of India (Sebi) for launching a dedicated scheme for the real estate and related sector.

The objective of Magnum Sector Funds Umbrella (MSFU) Real Estate Equity Fund is to provide investors opportunities for long-term growth in capital through an active management of investments in equity and equity-related instruments (including derivatives) of companies in the realty and similar sectors and in debt and money market instruments, the offer document said.

The open-ended scheme would be available in Retail and Institutional Plan with growth and dividend options.

Under the dividend option, facility for reinvestment and payout of dividend is available.

Minimum investment under the retail plan is Rs 5,000 while under the institutional plan, it is Rs 5 crore.

The performance of the scheme will be benchmarked against a composite benchmark created using BSE Realty Index to the extent of 60% of the portfolio and BSE 100 for the remainder 40%.

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