Canbank MF launches CanMulticap NFO

Our Banking Bureau
06 December 2006

The new fund offer (NFO), which opened today, will close on January 4, 2007. The objective of the scheme is to generate income/capital appreciation by investing in equities and equity-related instruments of companies spanning the entire market capitalization spectrum

Being a close-ended scheme, CanMulticap would be redeemed after five years from the date of allotment. However, the repurchase facility under the scheme shall commence after expiry of 90 days from the date of allotment of the units under NFO.

The NAV (net asset value) would be computed and announced on a weekly basis — on Wednesdays — and the Repurchase facility would be available on 1st and 3rd Wednesday of the calendar month. The units are offered at Rs 10 per unit and there would be no entry or exit load during the period of NFO.

The scheme will have a minimum application of Rs 5,000 and in multiples of Rs 1 per application. CanMulticap would have Growth and Dividend investment options.

"Canbank Mutual Fund has established an excellent track record in the last few years and the new scheme would endeavour to take these benefits to even larger sections of investors," says MBN Rao, chairman and managing director, Canara Bank. "The fund house has already built an impressive investor base that includes sizable NRI investment community and the CanMulticap would be an ideal addition to their investment portfolio."

Canara Bank, the sponsor bank, is distributing the mutual fund products through over 600 of its branches. These branches will also market CanMulticap, thus further strengthening the distribution network of the fund house, Rao added.