BUSINESS

SBI Mutual launches Blue Chip Fund

GROWTH FUND: P. G. R. Prasad (left), Managing Director and CEO, SBI Mutual Fund and Didier Turpin, Deputy-CEO at a press conference in Mumbai on Thursday.

GROWTH FUND: P. G. R. Prasad (left), Managing Director and CEO, SBI Mutual Fund and Didier Turpin, Deputy-CEO at a press conference in Mumbai on Thursday.  

MUMBAI: SBI Mutual Fund on Thursday launched an open-ended growth fund, SBI Blue Chip Fund. The new fund offer will open on Friday and close on January 20, 2006. The minimum amount of application is Rs. 5,000 and in multiples of Rs. 1,000 thereon.

The fund will invest in select 143 stocks, primarily in BSE 100 and also in 43 chosen scrips that are on a par with blue chips in terms of market capitalisation (more than Rs. 2,250 crore).

"These select companies form 67 per cent of the aggregate sales of all listed companies. The BSE 100 has historically, in the long run, outperformed the Sensex and the Nifty," SBI Mutual Fund Head of Equity, Sanjay Sinha, said here. The fund will have a minimum exposure of 70 per cent of its investments in equity stocks, 0-10 per cent in foreign securities, ADRs or GDRs and 0-30 per cent in fixed or floating rate debt instruments and money market instruments. — PTI

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