The Telegraph
Since 1st March, 1999
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Canbank Mutual to launch two schemes

Calcutta, Dec. 5: Canbank Mutual Fund, which has an asset base of Rs 1,060 crore, will launch a short-term debt scheme aimed at companies and banks in January.

The mutual fund, a wholly-owned subsidiary of Canara Bank, also plans to launch an equity index fund.

“We plan to introduce these two new schemes to increase our asset base to Rs 1,500 crore by the end of the current fiscal,” N. R. Ramanujam, managing director of Canbank Investment Management Services told reporters on Wednesday night. Canbank Investment Management Services (CIMS) manages the mutual fund business of Canara Bank.

The expected returns from the short-term scheme are around 7-8 per cent. Commenting on the corpus of funds they plan to mop up through the new schemes, Ramanujam said that was no fixed target. “The size of the market is Rs 1,200 crore and we expect to garner a sizeable share of it.”

Canbank Mutual Fund today manages 11 open-ended schemes and two close-ended schemes catering to the needs of all kinds of investors according to their risk appetite.

CIMS invests 75 per cent of the funds in debt instruments and government securities and 25 per cent in the equity markets.

The fund had launched two schemes during this year—Canliquid in January and Canincome, a debt fund in September.

“In our Canliquid scheme the return is hovering around 7 per cent. The Canincome scheme launched in September is close to Rs 100 crore,” Ramanujam said. The investor base of the fund is over 3.25 lakh as on date.

Regarding other schemes, he said Canpremium, Cancigo and Cangilt have consistently shown good performance. Ramanujam was in the city to address a seminar on investor education on the mutual fund industry.

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