Financial Daily from THE HINDU group of publications
Friday, Dec 09, 2005
StanChart MF unveils 2 close-ended schemes
Mumbai , Dec. 8
STANDARD Chartered Mutual Fund today announced the launch of two close-ended income funds targeted at traditionally fixed income investors.
The Standard Chartered Tristar Series I and Grindlays Fixed Maturity Plus Plan I will be close-ended income funds that also invest in a limited manner in equity.
The Funds will remain open for subscription till December 19, a press release issued by the mutual fund said here.
The Fund has got both these schemes rated by Crisil and have been accorded `AAA (SO)' rating which indicates the highest degree of certainty regarding timely payment of face value of investment to the unit holders on redemption. (However the rating is not an opinion on the stability of the NAV of the scheme, which may vary with the market developments).
Mr Naval Bir Kumar, Managing Director, Standard Chartered Asset Management Company Pvt Ltd, said: "The rating of the funds will definitely seek to provide a great level of comfort for investors.
"We feel that the close-ended nature of the funds with its controlled exposure to equities will work well in the favour of investors as one, no regular inflows will mean that the debt component of the portfolio could get locked in for a longer duration thus potentially giving better returns, and two the fund manager can try to increase exposure when markets are low and book profits when markets are heated up."
While the Standard Chartered Tristar Series 1 has a maturity period of 36 months and would mature on January 11, 2009, the Grindlays Fixed Maturity Plus Plan I has a maturity period of 16 months and hence would mature on May 2, 2007.
This process of equity investing can be simplified through the example of the lever.
As the equity portfolio appreciates and thus makes the portfolio "heavy", part of gains are realised and reinvested in debt to ensure that the portfolio does not get overweight on equity.
And when the equity part of the portfolio depreciates, the fund will endeavour to buy into equity in an effort to try and buy equity at lower levels.
The fund would thus strive to buy when markets are falling and sell when markets are rising.
The minimum purchase is Rs 5,000 and in multiples of Re 1 thereafter.
There is nil entry load during the new fund offer.
Standard Chartered Mutual Fund has been in operation over 5 years managing assets over Rs 10,300 crore and over 1,50,000 investor accounts.
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