Wednesday, December 26, 2007

ABN AMRO Mutual Fund plans Sector Select Fund

ABN AMRO Mutual Fund plans to launch ABN AMRO Sector Select Fund and has filed an offer document with the market regulator SEBI.

ABN AMRO Sector Select Fund is an open ended equity scheme which aims at providing long-term capital appreciation by investing in equity and equity related securities with a sectoral approach. The scheme will make investments in maximum four sectors as identified by the fund manager from time to time.

The scheme will offer only regular plan under which investors will have growth option and dividend option. The dividend option offers dividend payout and dividend re-investment facilities.

In case no option is indicated in the application form, then the default option will be the growth option & in case no facility is indicated in the application form for dividend option, then the default facility will be the dividend re-investment.

The minimum application amount is Rs.5000 and in multiples of Re 1 thereafter. The minimum application amount for SIP transactions will be Rs. 500.

The scheme will charge an entry load of 2.25%, if the amount invested is less than Rs 50 million. There will not be any entry load if the amount invested is more than Rs 50 million.

On the other hand if the amount invested is less than Rs 50 million and the units are redeemed within one year from the date of allotment, then there will be an exit load of 1%. Further there will be an exit load of 0.5% if the units are redeemed within six month from the date of allotment and the investment is more than Rs 50 million.

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