Sun launches MF

MUMBAI, May 22: Sun F&C Mutual Fund is launching its first mutual fund offering in India the Sun F&C Value Fund on Friday. The sche...

MUMBAI, May 22: Sun F&C Mutual Fund is launching its first mutual fund offering in India the Sun F&C Value Fund on Friday. The scheme will remain open for initial subscription till July 5.

The open-ended equity fund will be adopting a value-oriented investment approach. However, it will not be open for sales and re-purchases every day, instead, such liquidity will be available only once every quarter for a period of 15 days. No load will be charged to investors at entry. However, redemption within 12 months from the date of allotment will attract a charge of 3 % of the NAV.

The scheme will not be declaring any dividends and generally investors will not receive any income from the scheme. The income earned will remain invested in the scheme and will be reflected in the NAV.

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The value approach is a long-term style of investing which tries to locate in a disciplined manner, shares which for various reasons are selling at prices lower than the companies’ actual business value or future earnings potential.

Up to 95 % of the assets will be invested in equity and equity-related securities having a medium to high risk profile and up to 30 % in debt and money market securities having a low to medium risk profile.

The minimum target for subscription is Rs 1 crore, but there is no maximum target, indicating full and firm allotment.