The Hindu Business Line : Alliance Capital revamps MF plans

ALLIANCE Capital Mutual Fund, which has slipped from its once-premier position to hold only a little over Rs 2,000 crore at the end of December, has introduced critical modifications to some of its better-known schemes.

For starters, investments under `automatic investment plan' of schemes like Alliance Equity Fund have been freed from entry loads. This will combine with the removal of sales load on investment in another equity scheme, Alliance Capital Tax Relief '96. The latter earlier had an entry load of one per cent.

The other schemes to which the revision relates are Alliance '95, Alliance Frontline Equity and Alliance Sector Select Series (comprising three schemes: New Millennium, Buy India and Basic Industries). In the earlier system, the relevant entry/sales load was two per cent. The MF has, according to sources, has now pointed out that redemptions under such plans will attract exit loads equivalent to the usual sales/entry loads if units are redeemed within 30 days.

It may be mentioned here that the MF had earlier tinkered with institutional plans launched under its liquid and short-term products — Alliance Cash Manager and Alliance Short Term Fund. The initial investment amount has been reduced to Rs 1 crore from Rs 5 crore earlier.