MUMBAI, February 4: Canbank Mutual Fund has announced that its Canpremium scheme will be made open-ended shortly. The scheme, which was launched as an income-cum-growth scheme in May, 1991, will be redeemed on January 31, 1998.Canbank Investment Management Services, the asset management company (AMC), had written to the unitholders earlier, seeking their consent for making the scheme open-ended. The AMC also has plans to change some of the fundamental attributes of the scheme.In line with Sebi regulations, the AMC conducted a postal ballot at the end of which over 50 per cent of the investors in the scheme had opted for the rollover of their investments.
The redemption price for those opting out of the scheme is Rs 16,905.31 for every Canpremium unit of a face value of Rs 10,000. The trustees of the scheme have proposed the conversion into an open-ended scheme at the net-asset value (NAV) without any exit load.
Meanwhile, analysts point out that Canpremium has also gone the Canstar way, the onlydifference being that in the case of the former, the AMC has resorted to the open-end route.
The life of the fund was extended. and the face value, which was Rs 1 lakh at the time of the float, was reduced to Rs 10,000 on listing.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
