The Hindu : Business : Rs. 1,000 cr. to be raised through CanMulticap

Online edition of India's National Newspaper
Wednesday, Dec 27, 2006
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Rs. 1,000 cr. to be raised through CanMulticap

Special Correspondent

Canbank Mutual propose to invest in large, mid and small cap segments

THIRUVANANTHAPURAM: Canbank Mutual Fund, a subsidiary of Canara Bank, hopes to mobilise Rs.1,000 crore through its new fund offer `CanMulticap,' company's managing director B. Sukumaran said here on Tuesday.

At a press conference he said the company proposed to invest this close-ended equity fund in large cap, mid cap and small cap segments, hoping to ensure attractive returns to the investors.

The new fund offer, which opened for subscription on December 6, 2006, would close on January 4, 2007.

CanMulticap would be redeemed after five years from the date of allotment.

However, the company would extend repurchase facility under the scheme after 90 days of allotment of the units.

The net asset value would be computed and announced on a weekly basis (on Wednesdays) and the repurchase facility would be available on the first and third Wednesdays of each calendar month.

No entry or exit load

The units are offered at Rs.10 a unit and there would be no entry or exit load during the period of the new fund offering. The scheme will have a minimum application of Rs.5,000 and in multiples of Rs.1 per application.

CanMulticap will have growth and dividend payout options, Mr. Sukumaran said.

Aggressive campaigns

He said Canbank Mutual Fund had established an excellent track record in the last few years and would endeavour to attract new sections of investors to the latest fund offer through aggressive market campaigns and investor awareness programmes.

If the trend during the last couple of years was any indication, the returns from mutual funds are much more than that from other savings instruments.

Canbank Mutual Fund had launched 28 schemes since its inception and it currently manages 17 open-ended schemes and one close-ended scheme.

The fund house now manages assets to the tune of Rs.3,000 crore and services nearly 2.65 lakh investors through 22 investor relation centres across the country.

General manager of Canara Bank P. Mohanan said investor interest in Canbank Mutual Fund products was quite substantial in Kerala.

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