NEW DELHI, Oct 6: SBI Mutual Fund has decided to do away with the 4 per cent sales load to attract more money into Magnum Open Fund 1995. The load on the scheme was being dispensed with effect from October 1, 1997 till further notice. This implies that the investor could enter the scheme at the current net asset value (Rs 11.95 as on October 1, 1997), thus saving 4 per cent on his investible amount.

Mangum Open Fund is all set to declare a bonus issue in the ratio of 1:10 before Diwali which will be followed by another bonus issue in the current fiscal. This was disclosed by managing director of SBI Mutual Fund, Niamatullah, while re-launching the marketing campaign for the open ended scheme here on Monday. The scheme is being re-launched to garner additional Rs 100 crore. He said that the bonus was under "active consideration" and hoped that the same was likely to announced before Diwali, subject to the approval of the board. Another bonus, he said, was likely to be declared before March 1998.

He argued that the fund would be able to collect an additional Rs 100 crore through the re-launch of the marketing campaign as it was "one of the outstanding performers from the SBI Mutual Fund stable." He added that the Open Fund had consistently beaten the BSE sensitive index since launch, providing a return of 14.32 per cent as on September 15, 1997. He pointed out that the Open Fund provided "an investment opportunity for investors to partake of the high growth prospects offered by Indian capital markets." He also argued that investments in the Indian capital markets had provided higher returns over time than other investment avenues.

He said that investment in the Mangum Open Fund would not only provide investors with a readymade portfolio of high performing scrips, but would also offer several investor friendly facilities such as anytime withdrawal and investment, better customer services and availability of a monthly pension." Niamatullah further said that the fund would offer tax benefits under sections 54 EA and 54 EB for capital gains tax exemptions. As far as investment was concerned, he said the portfolio of the scheme was insulated from any sudden capital market downswings through prudent investment of part of the portfolio in the high yield debt instruments, which provide a steady income to fund.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.