The Equity Multiplier Fund is a close-ended fund of three years. It automatically converts into an open-ended fund once this tenure is completed. The equity allocation will range between 65-100 per cent and the debt allocation up to a maximum of 35 per cent.
Being a diversified equity fund, it will invest across sectors and across market capitalisations. The fund's portfolio will have around 40 stocks. But depending on market conditions, the number may increase. The fund will have the flexibility to be up to 35 per cent in cash if conditions warrant it. The scheme is positioned as an aggressive equity scheme for the long term investor. The offer document recommends this scheme for those who find a lacuna in their portfolios with respect to the overall risk exposure of the portfolio.
The fund will close for subscription by the end of January. However, if the fund reaches its target of Rs 500 crore, it will make an offer in two newspapers intimating its intention to close the scheme. Through the tenure of three years the NAV will be calculated once a week on Wednesdays and also on specified dates. Redemption from the fund will be allowed after every 6 months from the date of allotment.
Like any close-ended fund, the initial issue expenses will be amortised on a daily basis over the tenure of the scheme (three years). These will not exceed 6 per cent of the corpus.
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 10, 2007
Offer closes: January 31, 2007
Type of scheme: Close ended
Options: Growth, dividend payout, dividend reinvestment (After conversion into Open-ended scheme)
Cost of units during NFO: Rs 10
Minimum application amount: Rs 5,000
Minimum repurchase amount: Rs 500
Benchmark: S&P CNX Midcap Index
Fund manager: Anoop Bhaskar
Entry load during NFO: Nil
Entry load when open-ended: 2.25%
Exit load when close-ended: Depending on when repurchase takes place, exit load will start at 4% and go down to 2% and Nil on maturity of the scheme (February 22, 2010)
Exit load when open-ended: Not yet fixed
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