Search Button
Net Express Sections
The Indian Express

The Financial Express

Latest News

Elections '98

Express Investment Week

Market Indicators


Express Computers

Travel & Tourism

Advertisers Forum

Information Technology

Drumbeat: Ad Buzzaar

Dr. Know --Express Online Fax Services

Screen: The Business of Entertainment

Career India

Business Forum

Match Maker

Express Properties









29 January 1998

SBI MF to launch five-year assured return scheme

MUMBAI, January 28: SBI Mutual Fund is launching a five-year, close-ended, assured return income scheme known as the Magnum Monthly Income Scheme 98 (1), on February 3. Addressing a press meet to announce the launch of the scheme on Wednesday, the managing director of SBI Funds Management, Niamatullah, said that the asset management company will be offering an assurance for the return as well as the principal amount.

The return is guaranteed for all the five years of the life of the scheme. The scheme is offers four options of return - monthly, quarterly, annually and cumulative growth. Under the monthly option the return will be at the rate of 12.5 per cent per annum payable monthly. Under all options, the annualised yield works out to 13.24 per cent.

The payment to be made to the scheme, in case of a shortfall at the end of the closure of a financial year, would be by way of a funded guarantee which would be returnable to the extent that the scheme performs in future, and such that the NAV of the schemeis higher than the guaranteed face value of Rs 10 at the close of any financial year. The investment pattern is such that not less than 80 per cent of the monies will be invested in debt instruments at any given time and the remaining will be distributed between equity and money markets.

The net worth of the AMC is currently around Rs 45 crore. Moreover, SBI Mutual Fund hopes to garner around Rs 300 crore through this offering. The minimum amount specified in the offer document is Rs 50 crore.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


Bank of India

Godrej India


Bottom banner spot