Sahara Mutual Fund has launched a diversified equity fund. Named as Sahara Infrastructure Fund, the scheme will invest in stocks of companies operating in the infrastructure sector. The fund will be initially available for subscription from February 15 to March 10, 2006.
As per the stated asset allocation, it will invest 70-100 per cent of its assets in equities, while it can also invest up to 30 per cent of its assets in debt and money market instruments. The fund will be benchmarked against the S&P CNX Nifty index.
Like the fund house's last equity offering--Sahara Wealth Plus--Sahara Infrastructure Fund will also offer fixed pricing and variable pricing options. Under the variable pricing option, the recurring expenses will be charged to the scheme based upon its performance vis-a-vis the benchmark, while in the fixed pricing option, the expenses will be charged as per the industry practices and will not be performance-linked.
The fund will not charge any entry load. For an investment of less than Rs 1 crore, an exit load of 2.25 per cent will be charged upon redemption within 180 days, while a load of 1 per cent will be levied upon redemption after 180 days but within one year. For an investment of an amount equal to or more than Rs 1 crore but less than Rs 5 crore, an exit load of 1.75 per cent will be charged for redemption within 180 days, while for investments of an amount equal to or above Rs 5 crore, an exit load of 0.5 per cent will be charged upon redemption within 90 days.