There were two new Mutual Fund issues in this week ending May 21, 2010. One from SBI Mutual Fund and the other from Canara Robeco.

SBI Mutual Fund launched an open ended equity fund named "SBI PSU Fund". Canara Robeco Mutual Fund launched an open ended debt fund named "Canara Robeco InDiGo (INcome from Debt Instruments & GOld) Fund"

• SBI Mutual Fund launched an open ended equity fund named "SBI PSU Fund". As per the offer document, the fund is mandated to invest 65% - 100% of the collected corpus, in equity and equity related instruments covered under the universe of Public Sector Undertakings (PSU) companies including derivatives and upto 35% in debt securities and money market instruments.

• As per the offer document, the investment objective of the scheme is "to provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks of domestic PSUs and in debt and money market instruments issued by PSUs and others".
  
  The fund will broadly follow a top-down approach and invest in stocks of Public Sector Undertaking (PSU) companies, which will thus expose its investors to a sector specific risk on account of the funds portfolio concentration. Similarly, any change in Government policy and political decisions, can change the investment environment.

• Canara Robeco Mutual Fund launched an open ended debt fund named "Canara Robeco InDiGo (INcome from Debt Instruments & GOld) Fund". As per the offer document, the fund is mandated to invest 65% - 90% of the collected corpus, in Indian debt and money market instruments and 10% - 35% in Gold ETFs.
  
  As per the offer document, the investment objective of the scheme is "to generate income from a portfolio constituted of debt & money market securities along with investments in Gold ETFs. However, there can be no assurance that the investment objective of the scheme will be achieved".
  
  As an investment strategy, the fund will take cues from seasonal pattern in gold, global & domestic macroeconomic events, Government policies and central bank’s actions, to decide on the asset allocation between gold & fixed income.

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