Give your money the power to protect itself and an opportunity to grow. Invest in SBI Capital Protection Oriented Fund-Series II.
In the SBI Pursuit to invest SBI hard earned money, they are often faced with an investment dilemma that forces us to choose between capital protection and growth. Traditional investment avenues often tend to be safe, but with safety wouldn’t you like your money to give better returns? SBI Mutual fund understands your need and they therefore bring to you a unique fund of SBI capital protection oriented fund – Series II. The funds portfolio is structured in such a way that is oriented towards protection of the capital. However, there is no bank guarantee, insurance cover, etc., for the same. This specially designated fund gives your money an opportunity to grow besides protecting the capital.
What is SBI Capital Protection Oriented Fund – Series II :
SBI Capital Protection Oriented fund – Series II is a 5 year close ended fund which will invest predominantly in debt and debt related instruments and money market instruments with an option of investing upto 26% in equity and equity related instruments including derivatives. On one hand, the portfolio will be dominated by investment in G secs and AAA/P1+ or equivalent rated securities, and on the other hand it has the option to invest option 26% in equity assets which will help the fund to participate in the growth too, beyond conserving the capital.
SBI capital protection oriented fund – Series II can thus capture the best of both the worlds that is equity and Debt while endeavoring for capital protection.
Fund Facts :
A 5 year close ended capital protection Oriented Fund.
NFO closes on March 04, 2011.
Minimum investment : Rs.5000 and in multiples of Rs.1 thereafter.
Benchmark – CRISIL MIP blended index.
The fund will be listed on BSE.
Investment Strategy :
Debt Investments in debt will be in Government Securities and securities rated AAA. Since the investors to be targeted in this scheme may be risk averse, the underlying investment strategy should seek to blend the risk return parameters with capital protection. The scheme will invest in fixed rate debt instruments only. Investments in debt securities in the scheme will be limited to those having maturities not exceeding the residual maturity of the scheme. The residual maturity of instruments in which investment is made can never exceed the residual maturity of the scheme.
Equity Investments : will be in stocks listed on NSE and BSE having a market cap equal to higher than the market cap of the least market capitalized stock of the BSE 100 index. To provide diversification benefits to the overall portfolio, equity component will have a maximum exposure to a single stock not exceeding 10% of the overall portfolio at the time of investment. The scheme shall not invest more than 20% of portfolio in securities rated by ICRA which is the rating agency of the portfolio. The cap excludes securities like PSU Bonds, Govt. Securities. The fund manager shall not invest in securities which have a yield of more that 100 bps over the yield of AAA securities as per CRISIL/ICRA matrix at the time of investment.
Why invest in SBI capital protection oriented fund – Series II?
1. Quality Debt Portofolio – Investment only in G Secs and AAA/A1+ or equivalent rated securities.
2. Growth Potential – Equity asset class will be actively managed through investments in stocks listed on NSE and BSE having a market capitalization equal to or higher than the market capitalization of the least market capitalized stock of the BSE 100 Index.
3. Tax Efficiency – Avail indexation benefits and better post tax returns. Long term capital gains will be taxed @ 20% (plus surcharge & cess) with indexation benefit or 10% (plus surcharge and cess) without indexation benefit, whichever is beneficial to the investor.
4. Rated mfAAA (SO) by ICRA the rating indicates highest degree of certainty regarding payment of face value of investment to unit holders on maturity.
Suitable for :
Investors with low to medium risk profile.
High net worth individuals.
PF, trusts etc. looking to invest in equity markets but requires capital protection as well.
First time mutual fund investors who would like to enjoy the debt returns with an additional equity upside.
Investors who prefer to invest a significant part of their saving in relatively safe instruments like bank fixed deposits, PPF and NSC.
Name of Scheme : SBI Capital Protection Oriented Fund Series II
Type of Scheme : A five year close ended capital protection oriented fund.
Investment Objective : The primary objective of the scheme.
Minimum investment size : Rs.5000
Entry Load : NA
Exit Load : Nil
Terms of Issue : The units issued under the scheme shall not be repurchased before the end of the maturity period.
If you want to buy this policy please contact your nearest SBI Bank or login to www.sbimf.com, call 18004255425 toll free, SMS Capital to 56161.
In the SBI Pursuit to invest SBI hard earned money, they are often faced with an investment dilemma that forces us to choose between capital protection and growth. Traditional investment avenues often tend to be safe, but with safety wouldn’t you like your money to give better returns? SBI Mutual fund understands your need and they therefore bring to you a unique fund of SBI capital protection oriented fund – Series II. The funds portfolio is structured in such a way that is oriented towards protection of the capital. However, there is no bank guarantee, insurance cover, etc., for the same. This specially designated fund gives your money an opportunity to grow besides protecting the capital.
What is SBI Capital Protection Oriented Fund – Series II :
SBI Capital Protection Oriented fund – Series II is a 5 year close ended fund which will invest predominantly in debt and debt related instruments and money market instruments with an option of investing upto 26% in equity and equity related instruments including derivatives. On one hand, the portfolio will be dominated by investment in G secs and AAA/P1+ or equivalent rated securities, and on the other hand it has the option to invest option 26% in equity assets which will help the fund to participate in the growth too, beyond conserving the capital.
SBI capital protection oriented fund – Series II can thus capture the best of both the worlds that is equity and Debt while endeavoring for capital protection.
Fund Facts :
A 5 year close ended capital protection Oriented Fund.
NFO closes on March 04, 2011.
Minimum investment : Rs.5000 and in multiples of Rs.1 thereafter.
Benchmark – CRISIL MIP blended index.
The fund will be listed on BSE.
Investment Strategy :
Debt Investments in debt will be in Government Securities and securities rated AAA. Since the investors to be targeted in this scheme may be risk averse, the underlying investment strategy should seek to blend the risk return parameters with capital protection. The scheme will invest in fixed rate debt instruments only. Investments in debt securities in the scheme will be limited to those having maturities not exceeding the residual maturity of the scheme. The residual maturity of instruments in which investment is made can never exceed the residual maturity of the scheme.
Equity Investments : will be in stocks listed on NSE and BSE having a market cap equal to higher than the market cap of the least market capitalized stock of the BSE 100 index. To provide diversification benefits to the overall portfolio, equity component will have a maximum exposure to a single stock not exceeding 10% of the overall portfolio at the time of investment. The scheme shall not invest more than 20% of portfolio in securities rated by ICRA which is the rating agency of the portfolio. The cap excludes securities like PSU Bonds, Govt. Securities. The fund manager shall not invest in securities which have a yield of more that 100 bps over the yield of AAA securities as per CRISIL/ICRA matrix at the time of investment.
Why invest in SBI capital protection oriented fund – Series II?
1. Quality Debt Portofolio – Investment only in G Secs and AAA/A1+ or equivalent rated securities.
2. Growth Potential – Equity asset class will be actively managed through investments in stocks listed on NSE and BSE having a market capitalization equal to or higher than the market capitalization of the least market capitalized stock of the BSE 100 Index.
3. Tax Efficiency – Avail indexation benefits and better post tax returns. Long term capital gains will be taxed @ 20% (plus surcharge & cess) with indexation benefit or 10% (plus surcharge and cess) without indexation benefit, whichever is beneficial to the investor.
4. Rated mfAAA (SO) by ICRA the rating indicates highest degree of certainty regarding payment of face value of investment to unit holders on maturity.
Suitable for :
Investors with low to medium risk profile.
High net worth individuals.
PF, trusts etc. looking to invest in equity markets but requires capital protection as well.
First time mutual fund investors who would like to enjoy the debt returns with an additional equity upside.
Investors who prefer to invest a significant part of their saving in relatively safe instruments like bank fixed deposits, PPF and NSC.
Name of Scheme : SBI Capital Protection Oriented Fund Series II
Type of Scheme : A five year close ended capital protection oriented fund.
Investment Objective : The primary objective of the scheme.
Minimum investment size : Rs.5000
Entry Load : NA
Exit Load : Nil
Terms of Issue : The units issued under the scheme shall not be repurchased before the end of the maturity period.
If you want to buy this policy please contact your nearest SBI Bank or login to www.sbimf.com, call 18004255425 toll free, SMS Capital to 56161.
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