Birla Sun Life Mutual Fund has launched a diversified equity fund. Named as Birla Top 100 Fund, it will invest primarily in stocks of the top 100 companies, based upon their market capitalization. For this purpose, the fund will consider the companies listed on the National Stock Exchange. The fund will be initially open for subscription from August 30 to September 28, 2005.
Benchmarked against the S&P CNX Nifty, the fund will invest at least 65 per cent of its assets in the stocks of top 100 companies as measured by their market capitalization, while upto 35 per cent of the assets will be invested in stocks of other companies. The fund also has the option of investing upto 20 per cent of the assets in money market instruments.
The fund would charge an entry load of 2.25 per cent for investments of less than Rs 5 crore, while for investments equal to or greater than Rs 5 crore, no entry load will be charged. An exit load of 1 per cent will be levied if the amount is redeemed within six months from the date of allotment.