Birla Sun Life mutual fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Birla Sun Life Equity Linked Fixed Maturity Plan Series I Series M comprises of 5 schemes with 12-36 months of tenure. It is a close ended structured debt scheme. The face value of the new issue will be Rs 10 per unit. The Scheme seeks to invest in short and medium term debt instruments with fixed and/or floating payouts linked to equity indices. The scheme may also undertake to invest in derivative contracts. These instruments will normally mature in line with the time profile of the scheme.
Birla Sun Life Equity Linked Fixed Maturity Plan Series I to K will be having 18 to 36 months; Birla Sun Life Equity Linked Fixed Maturity Plan- Series L and M will mature after 12-24 months from the date of allotment.
The scheme will offer two options viz. retail and institutional with growth & dividend options. Dividend option will further offer dividend payout and reinvestment facilities.
The minimum application amount for retail investment is Rs 5,000 and Rs 5 crore and in multiples of Re 1 thereafter under institutional plan.
The scheme seeks to collect a minimum corpus of Rs 10 lakh during NFO period.
The scheme will invest upto 70-100% in debt instruments, money market instruments and securitised debt. Investment in debt instruments linked to equity indices shall be up to 100% of the net assets. It will invest upto 0-30% in derivative options. The scheme may invest upto 50% of the net assets in the securitised debt.
Notional value of derivative instruments shall be less than or equal to 100% of the net assets. The scheme may invest in foreign securities in accordance with guidelines as stipulated by SEBI from time to time upto 35% of its net assets.
Entry Load: The scheme under retail plan will charge 2.25% of entry load for investments less than Rs 5 crore and it will not levy any entry load for the investment equal to or greater than Rs 5 crore. No entry load will be levied for institutional plan.
Exit Load: The scheme will charge 2.00% of exit load if redeemed on or before 365 days from the date of allotment. It will levy 1.00% of exit load for the redemptions after 365 days from the date of allotment but before maturity date. No exit will levied for the redemptions on maturity.
The performance of the scheme is set as CRISIL Balanced Fund Index.
Prasad Dhonde will be the designated fund manager of the scheme. Vineet Maloo shall be the dedicated fund manager for investment in foreign securities.
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