New fund from Birla Sun Life Mutual Fund targeting traditional investors
5th February, 2010
Mumbai: Birla Sun Life Mutual Fund (BSLMF) has launched BSL Capital Protection Oriented Fund Series 1 (27 months), which offers those investing in traditional investment options like fixed deposits, an attractive alternative. This is a 27-month, close-ended fund which seeks capital protection by investing in high-quality debt securities maturing in line with the tenure of the scheme and seeking capital appreciation by investing a part of the capital in the equity market.
Mr. A. Balasubramanian, CEO, BSLMF, said, "Given that today investors in India have over Rs37 lakh crore in FDs, BSL CPOF Series 1 offers us an opportunity to provide these investors an alternative investment avenue. Investors with safety on their mind and with a time horizon of 2-3 years are our target audience". He said, "The fund intends to invest 90 per cent of the capital on the debt side in high-quality debt instruments. The rest of the 10 per cent of the capital shall be invested in the equity side and shall comprise high-growth stocks. Basically, the fund offers investors an opportunity to invest a small portion of their portfolio in the equity market with low risk."
BSL CPOF Series 1 (27 months) has been rated AAA (SO) by CRISIL. The fund offers the growth option only with a minimum application amount of Rs5,000 and multiples of Rs10 thereafter during the new fund offer period. Non-Resident Indians (NRIs), Foreign Institutional Investors (FIIs) and Persons of Indian Origin (PIOs) are eligible to invest in the scheme on a full repatriation basis. Benchmarked against CRISIL MIP Blended Index, the fund has no entry and exit load. It shall be open for subscription till 5 March 2010.
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 or sell units of the fund there.
About Birla Sun Life Asset Management Company
Established in 1994, Birla Sun Life Asset Management Company (BSLAMC) is a joint venture between Aditya Birla Group, a well-known and trusted name globally amongst Indian conglomerates, and Sun Life Financial Inc, a leading international financial services organisation from Canada.
BSLAMC is the fifth-largest asset management company in India with an average asset under management of Rs62,595 crore as on 31 January 2010. An impressive mix of reach through 106 branches, full range of product offerings across equity, debt, balanced and structured asset classes and strong investment performance has helped the company garner over 2.3 million investor scheme accounts. Known for its consistent performance, BSLAMC has received recognition from various institutes of international repute like CRISIL, Asian Investor magazine, The Asset magazine, ICRA and Lipper. It is the only fund house in India to have won the coveted "Mutual Fund House of the Year" from CNBC TV 18 CRISIL twice in a row.
About Aditya Birla Financial Services Group (ABFSG)
Aditya Birla Financial Services Group is a broad-based and integrated player in the financial services space with a strong presence across verticals viz., life insurance, asset management, retail broking, distribution and wealth management, NBFC, insurance broking and advisory services and private equity. ABFSG is rapidly growing in line with its vision to be a leader and role model in the Indian financial services sector.
The seven companies representing Aditya Birla Financial Services Group are Birla Sun Life Insurance, Birla Sun Life Asset Management, Aditya Birla Money (erstwhile Apollo Sindhoori Capital Investments), Birla Sun Life Distribution, Aditya Birla Money, Birla Insurance Advisory & Broking Services and Aditya Birla Capital Advisors.
The consolidated revenues from these businesses crossed US$1 billion mark in 2008-09. Today, ABFSG collectively enjoys the trust of over 4 million customers, manages assets of over US$16 billion and prides itself for having a talent pool of over 15,000 committed employees. ABFSG has its wings spread across more than 500 cities in India with over 1,500 branches and over 2 lakh channel partners.
ABFSG is a part of Aditya Birla Nuvo Limited (ABNL), a US$3 billion conglomerate with a leadership position across its manufacturing as well as services sector businesses. ABNL is a part of the Aditya Birla Group, a US$29 billion Indian business house operating in 25 countries across the globe.
About Sun Life Financial Inc
Sun Life Financial is a leading international financial services organisation providing a diverse range of protection and wealth accumulation products and services. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide. As on 31 March 2009, the Sun Life Financial group of companies had total assets under management of $375 billion globally.
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