LAUNCH OF SBI - ONE INDIA FUND - NEW FUND OFFER
- From: "State Bank of India, N R I Branch, Kolkata, India" <nribranch@xxxxxxxxx>
- To: "NRI-News Mail SBI NRI Branch Kolkata" <nribranchkolkata@xxxxxxxxxxxxx>
- Date: Fri, 1 Dec 2006 00:11:26 +0530
Dear All ,
LAUNCH OF "SBI ONE INDIA FUND."
We have received approval from SEBI to Launch “ SBI ONE INDIA FUND" , we
propose to launch this fund on 24th November 2006 and the fund will close for
initial subscription on 22nd December 2006. The application forms will be
available at our ISC's/ISD's. The Soft copy of the application form of the New
Fund Offer will be available on our Website i.e www.sbimf.com from 24th
November Onwards.
The Scheme features are as under.
Regards,
Sr.Vice President
Cross Selling Dept.
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PRODUCT NOTE
SBI One India Fund - Note
What Is SBI ONE INDIA FUND About ?
India is a land of social, cultural and economic diversity. If we were to view
India as constituting four regions – East, North, South and West - we would
observe that each of these regions have their traditional economic strengths
which have led to profitable investment avenues for discerning investors. For
example, while the Eastern region is rich in mineral resources like iron ore,
coal and alumina, the Southern cities like Hyderabad and Bangalore are the
traditional strongholds of the Information Technology industry. While Auto and
auto ancillary industry has thrived in and around centers like Pune, Chennai
and Delhi we find that Petrochemical complexes have developed near ports such
Jamnagar, Haldia, Mangalore. We can infer that each region is a full-fledged
investment universe in itself offering a multitude of investment opportunities.
SBI One India Fund is a fund that would endeavor to participate in the
all-round growth of the Indian Economy through a dedicated investment approach
focused on the four regions of the country.
Participate in the all-round growth of Indian economy by benefiting from the
best in each Region
Investment objective
To provide investors with opportunities for long term growth in capital through
an active management of investments in a diversified basket of equity stocks of
companies across all four regions of India and in debt and money market
instruments
Asset Allocation Pattern
Type of Instrument
Normal Allocation (% of Net Assets)
Risk Profile
Equities and equity related instruments including derivatives
70% - 100%
High
Fixed/Floating rate Debt instruments and /or Money Market instruments
0% - 30%
Medium to Low
ADR/GDR/Foreign Securities
0% - 20%.
High
· The Fund would invest atleast 15% and not more than 55% of its
equity exposure to each of the four regions.
· Atleast 15 stocks in each region. Diversification across sectors
in each region and at the scheme level.
· Investment approach to be “bottom-up” without any sector/market
capitalization bias.
· Benchmark Index - BSE 200 Index.
a.. Entry load cannot be charged by the scheme as it is a close-ended
scheme. (Please note the scheme cannot be marketed as “No-entry load” scheme as
per SEBI Regulations)
b.. Exit load To be equivalent to the unamortized initial issue expenses
outstanding on a daily basis in the form of repurchase NAV, the computation of
which is detailed below:
c.. If Initial issue mobilization is Rs. 1000 crores
d.. If Initial issue expenses incurred and charged to the scheme is Rs.
40 crores or 4% of initial issue corpus
e.. Initial issue expenses to be amortized over the tenor of the scheme
viz. 3 years or 1095 days
f.. Initial issue expenses to be amortized on a daily basis viz. 40
crores/1095 days = Rs. 365297 or 0.0913% per day
Assume an investor invests Rs. 10000 during the NFO at Rs. 10.
Units allotted is 1000
Date of allotment is 17.1.2007
Assume that the above investor submits a repurchase request on 31st December
2007
NAV on 31st December 2007 say is Rs. 11.52
Number of days to repurchase from allotment date is 349
Repurchase NAV per unit = NAV – unamortized expenses
= 11.52 – ((1095-349)*0.000913*0.4)
= Rs. 11.25
This is similar to an exit load of 2.34%. As the tenor of investment increases,
the difference between the NAV and the Repurchase NAV will reduce. On maturity,
the repurchase NAV will be equal to the NAV of the scheme.
Fund Facts
· Close-ended Fund with 3 – year tenor
· NFO open from 24th November 2006 to 22nd December 2006
· Scheme reopens for continuous repurchase from 19th January 2007
· Load Structure ( During NFO)
· Entry Load will not be charged.
· Exit Load – Nil
· Minimum investment – Rs. 5000 and in multiples of Rs. 1
· NAV and repurchase NAV to be disclosed on a daily basis
· Dividend and Growth options available. Dividends will be completely
tax-free. Long term capital gains to be completely tax-free. Short –term
capital gains to be taxed at 10% (plus applicable surcharge and cess)
· Automatic conversion into open-ended scheme on maturity.
· SIP or STP facilities not available since the scheme is close-ended
Why Should one invest in SBI ONE INDIA FUND ?
SBI One India Fund follow a top down view which will be formed to identify
those regions which present the most attractive relative investment opportunity
within the country. Within a region, the most promising stocks will be
identified. This sharp focus on every region of the country will provide a
disciplined approach towards identifying potential multi-baggers from each
region. Hence, this is a unique fund in which stock selection will be based on
regions as the primary theme with factors such as market capitalization or
sector or style (growth/value) taking secondary consideration.. Thereby
creating a unique blend of top down approach in selection of region and bottom
up approach in stock selection.
Why SBI Mutual Fund?
a.. SBI Mutual Fund (SBI MF) is one of the premier fund management houses in
the country.
b.. Investor base of over 2.3 million have reposed their trust with us.
c.. 18 years of rich experience in fund management.
d.. SBI Mutual Fund - Most Preferred Mutual Fund awarded by CNBC Awaaz
Consumer Awards 2006.
e.. Successful track record of managing wide variety of Funds.
f.. Recognized for superior performances. 13 Awards in 2005-06.
g.. Successfully launched and managed innovative products.
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In Case of any query and suggestions on Mutual Fund Education, please feel free
to contact any
of the following persons given below
1. Shri. Shuvinder Hemraj, Asst. Vice President, Mobile No:09819395799 or
email shuvinder.hemraj@xxxxxxxxx
2. Shri. Ashok Kamath, Chief Manager, Moblie No:09819477855 or email
a.s.kamath@xxxxxxxxx
3. Shri Mozart Moraes, Manager - (Ops - CS) Mobile No:09820364272 or email
mozart.moraes@xxxxxxxxx
Also if you would like to receive such emails on your personal email ids or any
further information , please reply to this mail and we would get in touch with
you at the earliest. Please also visit our website on www.sbimf.com for furhter
details on our schemes.
Sr. Vice President
SBI FUNDS MANAGEMENT PRIVATE LTD.
(A joint venture between SBI and SGAM)
191, Maker Towers E,
19th Floor, Cuffe Parade,
Mumbai 400005.
Tel:(022) 22180221.
Disclaimer
This report has been prepared by SBI Funds Management (P) Ltd (SBI Mutual
Fund) and is meant for the recipient for use as intended and not for
circulation. The information contained herein is from the public domain or
sources believed to be reliable. While reasonable care has been taken to ensure
that information given is at the time believed to be fair and correct and
opinions based thereupon are reasonable, due to the very nature of research it
cannot be warranted or represented that it is accurate or complete and it
should not be relied upon as such. SBI Mutual Fund, its directors and employees
will not in any way be responsible for the contents of this report. This is not
an offer to sell or a solicitation to buy any securities. The securities
discussed in this report may not be suitable for all investors. Investors must
make their own investment decision based on their own investment objectives,
goals and financial position and based on their own analysis.
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Risk Factors: Mutual funds and securities investments are subject to market
risks and there is no assurance or guarantee that the objective of the mutual
fund will be achieved. As with any other investment in securities, the NAV of
the Magnums issued under the schemes can go up or down depending on the factors
and forces affecting the securities market. Past performance of the
Sponsor/AMC/Mutual Fund does not indicate the future performance of the schemes
of the Mutual Fund. Please read offer document of the scheme carefully before
investing. Asset Management Company: SBI Funds Management Pvt. Ltd.(A joint
venture between SBI & Societe Generale Asset Management), 191, Maker Towers
'E', Cuffe Parade, Mumbai -400 005. Tel: 91 22 2218 0221-27. E-mail:
partnerforlife@xxxxxxxxxx Visit www.sbimf.com Trustee: SBI Mutual Fund Trustee
Company Pvt. Ltd.Statutory Details: SBI Mutual Fund has been set up as a trust
under The Indian Trusts Act, 1882. State Bank of India, the sponsor is not
responsible or liable for any loss resulting from the operation of the schemes
beyond the initial contribution made by it of an amount of Rs. 5 lakhs towards
setting up of the mutual fund
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