Birla Sun Life’s capital security fund afloat
Birla Sun Life Asset Management Company has launched a Capital Protection-Oriented Fund Series 5, a close-ended capital protection-oriented scheme, which is an appealing alternative to the traditional investment options like Fixed Deposits.
The scheme has a term of 832 days and is oriented towards protection of the invested money by investing into high quality bonds (debt) till the end of term and exploring capital growth prospect by investing a part of the capital for equity market exposure.
“BSLAMC has been amongst the pioneers in this category. We began the Year with the launch of Capital Protection Oriented Fund Series 3 and 4, which received good response from investors. We are now taking this further through the launch of Series 5,” said A Balasubramanian, CEO of BSLAMC.
“Investors who not only look for protecting his/her hard earned money but also look for investment options that can provide returns on his/her capital, will find this an striking proposal.” he added.
This product is so designed to keep the investors’ money safe. At the same time it allows the investor an opportunity to take a small exposure to equity market through investing in premium of exchange traded index options. The returns of such funds are also more tax – efficient as compared to traditional deposit. BSLAMC had collected a total of over Rs 300 crore through its earlier launches, BSL CPOF Series 3 and 4 from retail investors.
BSL CPOF Series 5, has been rated mfAAA(so) by ICRA. The fund offers growth option only, with minimum application amount of Rs 5,000 and multiples of Rs 10 thereafter during the new fund offer period. Non-Resident Indians (NRIs), Foreign Institutional Investors (FIIs) and Person of Indian Origins (PIOs) are eligible to invest in the scheme on a full repatriation basis. Benchmarked against CRISIL Balanced Fund Index, the fund has no entry and exit load. It shall be open for subscription till 25th March 2011.
The redemption of units shall be allowed only at the maturity of the scheme. However, the fund shall be listed on stock exchanges, and investors can buy sell units of the fund there. Although it is always recommended to hold the units of capital protection oriented schemes till maturity to derive the potential benefits that can be offered by the scheme.
Source: [Moneyguruindia]
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