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 Rs10 per unit and there would be no entry or exit load during the period of NFO.

The scheme will have a minimum application of Rs5,000 and in multiples of Rs1 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 M B N 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.

The new scheme will invest in equity and equity-related instruments in the infrastructure sector up to 100 per cent and in debt and money market instruments up to 25 per cent. The performance of the scheme will be bench marked with the 'BSE 200'.

Canbank Mutual Fund, sponsored by Canara Bank, has launched 28 schemes since its inception and currently manages 17 open-ended schemes and one close-ended
scheme.

The fund house currently manages an average asset of Rs3,000 crore. It took over the schemes of GIC Mutual Fund in September 2005.