Sundaram BNP Paribas Select Small Cap | Value Research Sundaram BNP Paribas has started the new year with two close-ended equity funds. Here we talk about the small-cap fund
Fund News

Sundaram BNP Paribas Select Small Cap

The mid-cap offering from BNP Paribas has been a hit. Now the fund has come out with a small-cap offering.

Just like it plans to limit the corpus of the Equity Multiplier Fund to Rs 500 crore, it will do the same here at Rs 300 crore.
While this too is a close-ended fund, its tenure is longer at five years. Moreover, Select Small Cap will not convert to an open-ended fund at the end of its tenure (like the Equity Multiplier). Instead, the fund house will allow a 10 per cent redemption every year and will be redeemed at the end of its tenure.

Being close-ended, units holders cannot redeem their units on an ongoing basis but can do so once in a fortnight (2 nd and 4th Friday of the month) subject to a maximum 10% of their holdings in a year.

The investments in small-caps will range from 65-100 per cent while other equities will have a maximum limit of 35 per cent. Fixed-income securities will range from 0-35 per cent.

Those investing Rs 50,000 or more have to obtain a MIN (Mutual Fund Identification Number). The form is available on the Sundaram ( www.sundarambnpparibas.in) and AMFI (www.amfiindia.com) websites. Submit a complete form with the prescribed documents at the Point of Service (POS) designated centres. The list and locations of POS centres is available on both the websites mentioned above.

Snapshot
Offer opened: January 1, 2007
Offer closes: January 24, 2007
Type of scheme: Close ended
Cost of units during NFO: Rs 10
Fund manager: Anoop Bhaskar
Minimum application amount: Rs 5,000
Entry load: Nil
Exit load: From 3% to 0.5% depending on when units are redeemed
Options: Growth, Dividend payout



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