Mumbai, Mar 20: The Magnum Multiplier Plus Scheme 1993 (MMPS) of SBI Mutual Fund is being converted into an open-ended scheme from April 1. Launched as a close-ended growth scheme in 1993, the scheme is due for redemption in February 1999. It is the largest scheme of the fund with a corpus of Rs 480 crore and investible funds of Rs 600 crore.Investors have the option to redeem or roll-over into the open-ended scheme. Redemption is at the repurchase price which is at a discount of up to 2 per cent to the net-asset value (NAV). "We are also considering declaration of dividend for the scheme after it becomes open-ended and if the NAV permits," said SBI Mutual Funds managing director Niamatullah.
The fund also plans to reopen the sale of Magnum Multiplier Scheme '90 (MMS) which went open-ended in February 1998. "This open-ended growth scheme has paid a total of 85 per cent in dividends since 1992-93," said Niamatullah.
According to the fund manager Ajay Bodke, "We have entirely restructured the portfolioof MMS '90 and have moved out of the B2 category shares. The new portfolio focuses only on large-cap companies with growth potential." The new investment structure comprises 95 per cent exposure to equity and remaining 5 per cent to debt. By weight this scheme has the highest exposure to HLL at 17 per cent, State Bank of India 8.96 per cent and MTNL 7.02 per ecnt among others.
After the scheme went open-ended in February this year it was left with three lakh investors as against four lakh initial investors. The scheme has investible funds of Rs 114 crore.
Magnum Open fund '95, a balanced fund from SBI Mutual Fund which was relaunched in October last year, has seen an accretion of Rs 12 crore, said Niamatullah.
The much-awaited index fund from SBI Mutual Fund is still on hold as they are closely watching the markets. "We will launch it as soon as a stable pattern is seen emerging in the capital markets," added Niamatullah.
The mutual fund, since its restructuring in September 1997, has beenincreasingly focussing on marketing, customer service and investments.
According to Niamatullah, the fund has become more aggressive and proposes to further strengthen the team by recruiting more marketing professionals.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
