Standard Chartered Mutual Fund has launched a diversified equity fund. Named as Standard Chartered Premier Equity Fund, it will invest in small and medium sized businesses with a long-term horizon. The fund will be available for subscriptions initially from September 5 to September 26, 2005. However, the fund house may close the initial offer once the initial subscription amount reaches Rs 300 crore. In fact, the unique feature of the fund is that even after the initial subscription period, the fund will not be open for subscriptions on an ongoing basis, but intermittently, as and when the fund house feels that stocks are available at reasonable valuations.
The minimum subscription amount is kept substantially high at Rs 25,000 per application. However, through the SIP route, an investor can start investing with a minimum monthly instalment of Rs 5,000 and a maximum of Rs 10 lakh, with a commitment of at least six instalments.
The fund would charge an entry load of 2.25 per cent for lumpsum as well as the SIP investments. The fund would charge an exit load of 1 per cent upon redemption within one year from the date of allotment. However, if the SIP/ STP is discontinued prior to a minimum of six months after commencement of SIP/ STP, an exit load of 2 per cent will be charged irrespective of the date of redemption.
