Kolkata : State Bank of India Mutual Fund (SBIMF), one of the leading mutual fund companies, will tap emerging opportunities in the booming infrastructure sector in India with the launch of a new fund.
SBIMF equity head Sanjoy Sinha told a press conference that the "SBI Infrastructure Fund – Series: I" would have growth and dividend investment options.
"The fund is intended to harness the investment opportunity in the infrastructure sector in India with an estimated Rs.14,000 billion proposed to be spent in the 11th Five-Year Plan," Sinha said here Monday.
SBI Fund Management Pvt Ltd is a joint venture between State Bank of India, India's largest bank, and Societe Generale Asset Management of France.
SBIMF currently manages Rs.130 billion of equity on the domestic front and there are 17 products in the company basket.
Sinha said the new fund will invest a minimum of 65 percent in equity and equity-related instruments including derivatives, while the balance is proposed to be invested in a mixture of debt and money market instruments.
"As for selecting the money market instruments, we'll select those which have been benchmarked to BSE 100 index," Sinha added.
The new fund offer opens for subscription May 11 and will close June 8.