SBI Mutual Funds Management has finally filed its initial papers with India's market regulator for launching a dedicated scheme for the real estate and related sector.

The objective of Magnum Sector Funds Umbrella (MSFU) Real Estate Equity Fund is to provide investors opportunities for long-term growth in capital through an active management of investments in equity and equity-related instruments (including derivatives) of companies in the realty and similar sectors and in debt and money market instruments.  

The open-ended scheme will be available in Retail and Institutional Plan with growth and dividend options.

The minimum investment under the retail plan is Rs 5,000 while under the institutional plan, it is Rs 5 crore.  

The performance of the scheme will be benchmarked against a composite benchmark created using BSE Realty Index to the extent of 60% of the portfolio and BSE 100 for the remainder 40%. The fund manger will be Ritesh Sheth.

The fund house managed assets worth Rs 29,200 crore at the end of December, data from the Association of Mutual Funds in India showed.