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Our Market Bureau
Mumbai, Oct 26: The Sun F&C Asset Management Company is launching its second domestic open-ended scheme - a dual option income fund. Christened Sun F&C Money Value Fund, it will have two options - a liquid option for short term investments and a bond option for longer investments.
``The scheme is ideal for investors who are looking for fixed income returns and are also looking for both short-term and longer term investments,'' said the chief executive officer of Sun F&C, Nikhil Khattau.
The liquid option will be a high liquidity, money market oriented investment option specially designed for deployment of short term surpluses or float funds of corporates, institutions and high networth individuals. The bond option is for fixed income-oriented investors seeking steady income or steady accretion in their investment.
``The scheme is not an assured return scheme. The liquid option investing in short term securities will have a yield close to the rate of return prevalent in the call money market while thebond option investing in corporate debentures and partly in money market (for liquidity) will have yields in line with the corporate debt market which is currently at 12 per cent,'' said a company official. The scheme is open for initial subscription from October 26 to November 9. There is no initial load, which means that the entire amount invested by the unitholder in the scheme will be deployed in the debt market. Subsequent subscriptions and redemptions will also be on a no-load basis. The scheme does not have any lock-in period and thus, investors can enter and exit the scheme as and when the investors choose. The scheme also includes capital gains tax exemptions under section 54 EA/54 EB.
On the fund's strategy to enter the market at a predominantly bearish scenario, Khattau expressed cautious optimism stating that the AMC aim of mopping up Rs 5 crore is a relatively realistic and moderate target, given the present market sentiment. The equity fund from the AMC, Sun F&C Value Fund has appreciated by11.52 per cent (NAV as on September 30 is at Rs 12.39) over the last quarter. The fund has appreciated by 23.90 per cent since inception and 29.74 per cent since January 1.This means that the fund outperforms the BSE Sensex by 52.15 per cent since inception.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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