Sun F&C Mutual Fund launched its maiden fund, Sun F&C Value Fund on May 23, 1997. An open-end scheme, Value Fund seeks long-term capital appreciation through investment in value-oriented equities. The fund will reinvest its realised income and gains. Under normal conditions, upto 95 per cent of the corpus will be invested in equities. The fund can also invest upto 30 per cent on its assets in debt and money markets.

Sun F&C Value Fund will follow the ``value investing strategy.'' The ``Value'' funds primarily have a strategy of buying bargains where ever they exit. Bargains here mean stocks which, for a variety of reasons, are selling at a price which are lower than the company's actual value. These funds invest in companies with low price-to-earning ratio, low price-to-book value ratio and high dividends-yield. Templeton India Growth Fund follows a similar investment strategy.

The minimum application amount for Sun F&C Value Fund is Rs 5,000 and the initial issue expenses will be borne by the asset management company. The fund closes for initial subscription on July 5, 1997. After the closure of the initial offering, the fund will open for ongoing sales and redemption for the first 15 days in February, May, August and November every year. The fund will not charge any initial expense. However, redemption within a year will carry a charge of 3 per cent. While subsequent purchases will carry an entry-load of 3 per cent, investments for more than a year will not carry any charge. Sun F&C Value Fund is only suited for long-term investors with patience.

Builder Fund from Kothari Pioneer

Kothari Pioneer Mutual Fund will launch its Kothari Pioneer Income Builder on June 2, 1997. An open end income fund, Income Builder will be the first income fund from Kothari Pioneer. Normally, the fund could invest its entire corpus in debt. The fund has also indicated a possible 20 per cent equity exposure. Investors are being provided the option of regular annual income and income cumulation. Kothari Pioneer Income Builder is a no load fund. The minimum application amount is Rs 2,000. The fund closes for initial subscription on June 23.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.