Sundaram Mutual Fund is set to launch a diversified equity fund. Named as Sundaram CAPEX Opportunities Fund, it will invest in stocks of the companies in the capital goods sector. The fund will seek to capitalise upon the growth prospects of the companies that supply material, equipment, products and services that help businesses expand capacities.
The fund would invest 70-100 per cent of its assets in stocks of the companies in the capital goods sector, while up to 30 per cent can be invested in other stocks. The fund also has the provision to invest up to 15 per cent of its assets in money market instruments.
Sundaram CAPEX Opportunities Fund will maintain separate portfolios for growth and dividend options, so as to ensure that distributable surplus reflects only in one portfolio, and does not affect the growth option holders.
The fund would be initially open for subscription from August 10 to September 5, 2005. During the initial subscription period, the fund will not charge any entry load. However, an exit load of 3 per cent will be charged upon redemption within 6 months from the date of allotment.
For subscriptions on an ongoing basis, an entry load of 2.25 per cent will be applicable for investments of less than Rs 2 crore. For investments greater than or equal to Rs 2 crore, no entry load will be charged. Investments of less than Rs 2 crore will not attract any exit load, while investments of an amount greater than or equal to Rs 2 crore will attract an exit load of 2.25 per cent, if redeemed within six months from the date of allotment.