Edelweiss MF Files Offer Document With Sebi

An open-ended diversified equity scheme

Birla Sun Life Mutual Fund has filed offer document with Securities and Exchange Board of India (SEBI) to launch Birla Sun Life 130 – 30 Fund. It is an open-ended diversified equity scheme. The face value of the new issue will be Rs 10 per unit.

The investment objective of the scheme is to generate long-term growth of capital by investing predominantly in a portfolio of equity and equity related securities. The scheme may also take short positions in stocks and/or index.

The scheme will offer two plans viz. retail and institutional plan. Each plan under the scheme will have dividend and growth option. Dividend options shall have payout, reinvestment and sweep facility.

The minimum application amount under retail plan will be Rs 5, 000 and in multiples of Re 1 thereafter. Under institutional plan, the minimum application amount is Rs 5 crore and in multiples of Re 1 thereafter.

The scheme targeted to collect a minimum corpus of Rs 1 crore during NFO period.

The scheme will invest 65%-100% in equity and equity related instruments with medium to high risk profile and invest upto 35% in fixed income/debt securities including money market securities. Investment in securitised debt papers may be made upto 50% of the debt portfolio of the scheme. The scheme may invest upto 95% of the net assets of the scheme in such derivatives instruments.

The scheme may undertake stock lending not more than 20% of the net assets can generally be deployed in stock lending. And not more than 5% of the net assets can generally be deployed in stock lending to any single counter party.

The scheme will levy upto 2.50% as entry load for the purchase / switch-in of units less than Rs 5 core in value and it will not charge any entry load for the purchase of units equal to or greater than Rs 5 crore in value.

For purchase of units less than Rs 5 crore, the scheme will charge 1.00% of exit load if the units are redeemed / switched out within 6 months of allotment. It will charge 0.5% if the units are redeemed / switched-out after 6 months, but before 12 months from the date of allotment. No exit load will be levied for the repurchase/ switch out of units equal to or greater than Rs 5 crore in values.

The performance of the scheme is being benchmarked to the performance of BSE 200.

Jignesh Shah will manage the investments under the scheme.