Under the scheme, Capital Protection Oriented Fund Series II, a minimum of 74 per cent of the corpus will be invested in AAA rated debt instruments, while the balance will go towards equity, SBI Mutual Fund Chief Investment Officer Navneet Munot told reporters here.
"The current environment of volatility in equity markets and higher interest rates in fixed income make the product very timely. This is the best of both worlds (debt and equity) an investor can get," he added.
The scheme, which will be open between February 18 and March 11, entails protection of the principal while the investor also gets a chance to participate in equity markets, Munot said.
It will not have an entry or exit load, while the net asset value (NAV) will be disclosed on a daily basis. The minimum initial investment in the scheme will be Rs 5,000. In the equity component, there is a cap of 10 per cent on single stock, Munot said, adding currently the fund house is bullish on scrips from the consumption oriented, healthcare and IT sectors.