SBI Funds Management to launch India's fourth Shari'ah-compliant equity fund.
SBI Mutual Fund, a unit of SBI Funds Management, has revealed plans to launch a Shari'ah-compliant, diversified equity fund on 1 December, investing across the market in large, mid and small cap companies. SBI Funds Management is a joint venture between The State Bank of India and French asset management group Amundi. Shari'ah-compliant funds are already offered in India by Goldman Sachs, Tata and Taurus.
The SBI Shariah Equity Fund offer closes on 15 December and the scheme will reopen on or before 26 December. The investment objective of the scheme is to provide medium to long term capital gains by investing in Shariah-compliant equity and equity-related instruments. The fund aims to invest at least 90 per cent of its funds into equities and up to 10 per cent in money market instruments (but only if they are approved by the Shari'ah Board). The fund is benchmarked against the S&P BSE 500 Shariah Index.
The fund manager is Ruchit Mehta, who has seven years' experience, mainly as a research analyst and is presently Chief Manager Investments (Research) with SBI Funds Management. He is also co-fund manager and managing equity portion of SBI Magnum Monthly Income Plan, SBI Regular Savings Fund, SBI EDGE Fund & SBI Magnum Monthly Income Plan - Floater.
The SBI Shariah Equity Fund is characterised by the group as 'high risk'. Minimum investment is INR 5,000.
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|Date:||Nov 30, 2014|
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