Taurus Parsoli Ethical Fund a five year close ended equity oriented scheme- A Shari'ah Compliant Islamic Fund got nod from the Securities and Exchange Board of India. It is the India's first Shari'ah-Compliant mutual fund. Taurus had filed the offer document for approval with Sebi in October 2007. Fund house plans to launch after Muharram or in April.
Details of the Scheme:
Taurus Parsoli Ethical Fund is a Closed-ended Equity oriented Scheme with automatic conversion into an open ended scheme after 5 years from the date of allotment. The offer price is Rs 10 per unit.
The investment objective of the scheme is to provide capital appreciation and income distribution to unit holders through investment in a diversified portfolio of equities, which are Shari'ah compliant.
Shari'ah compliance: The scheme only invest in those listed securities which are shari'ah compliant and as approved by shari'ah Board.
The scheme offers two options viz. growth and dividend option. The minimum application amount of the scheme is Rs 5000 and in multiples of Rs 1000 thereafter.
The Fund seeks to raise a minimum of Rs.1 crore during the New Fund Offer Period and would retain entire excess subscription received. Quarterly redemption facility is available.
The scheme invests upto 80-100% in equity and upto 20% in money market instruments.
During the new fund offer period the scheme will not charge any entry or exit load.
However, redemption before expiry of 5 years from the date of allotment will be subject to an early exit charge. An early exit charge equivalent to the unamortized new fund offer expenses will be recovered from the investor in case of redemption before expiry of 5 years from the date of allotment. As per the SEBI (Mutual Funds) Regulations, 1996 the new fund offer expenses can be charged to the scheme. Such NFO expenses shall be amortised over life of the closed ended scheme. Hence in accordance with the regulations, NFO expenses not exceeding 6% of the amount mobilised, will be charged to the scheme and will be amortised over a period of 5 years. If the investor opts for the redemption before the completion of 5 years, proportionate unamortized portion of the NFO expenses outstanding as on the date of the redemption shall be recovered from such investor.
After conversion into an open ended scheme, the fund will charge 2.25% of an entry load for the investment value upto Rs 1 crore and for investment value greater than Rs 1 crore and less than Rs 3 crore the fund will charge 1.5% of an entry load and nil for the investment value equal to and greater than Rs 3 crore.
The scheme will not charge any exit load for the investment value upto Rs 1 crore and for investment value greater than Rs 1 crore and less than Rs 3 crore the fund will charge 0.75% of an exit load for redemption upto one year and nil after one year. And for the investment value greater than Rs 3 crore the scheme will charge 2.50% as exit load if redeemed upto one year and nil after one year.
The schemes performance will be benchmarked against BSE 100 as well as PIE (Parsoli Islamic Equity) Index.
Investment Strategy: The corpus of the scheme will be invested in the companies which are Shari'ah compliant. Therefore, it is not permissible to acquire the shares of companies providing financial services on interest like conventional banks, insurance companies or the companies involved in some other business not approved by Shari'ah, such as companies manufacturing, selling or offering liquors, pork meat, or involved in gambling, night club activities, pornography etc. Role of Parsoli Corporation
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