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Goldman Sachs to launch Equity Fund

The big new entrant get closer to flagging off its Indian operations

Goldman Sachs AMC has filed an offer document with SEBI to launch its maiden fund, Goldman Sachs India Equity Fund. It will be a general open-end equity fund with a broad mandate to generate long-term capital growth from an actively managed portfolio of equities. It may also invest in debt and money market instruments with a maximum exposure of 35 per cent.

The minimum investment needed to be part of this fund is Rs 50,000. The fund will have an entry load of 2.25% for investment upto Rs 5 crore. The fund will also levy an exit load of 1% if redeemed within 6-months or 0.5% if redemption is between 6 and 12 months of investment.

Most Indian equity funds require a minimum investment of Rs 5,000. Few still have lower starting investment threshold of Rs 1000 and Rs 2000. Reliance Regular Savings Equity fund requires a minimum investment of Rs 500 only. IDFC Premier Equity Fund has a minimum investment Rs 25,000, the highest amount stipulated by an equity fund.

The fund performance will be benchmarked to the performance of BSE 500 index. Prashant Khemka will be the designated fund manager who has 10-years experience in securities and asset management business.