The Hindu Business Line : ING Vysya moots Radiant India Fund

ING Vysya MF has lined up an equity scheme based on a contemporary theme - `radiant India'. It will invest mainly in companies that obtain a sizeable portion of their revenues from the domestic market.

ING Vysya Radiant India Fund, with the broad-based BSE100 as its benchmark index, will focus on businesses that derive value from within the country. The offer document sent by the MF to SEBI for approval refers to "long-term investment themes centred around taking advantage of the growth opportunities in the Indian economy." This will serve as the underlying principle based on which the fund manager will build his portfolio.

The fund, a small portion of which will be kept liquid through investment in the money market, may also use derivatives to protect the interests of unit-holders. The indicative asset allocation is: 80-100 per cent in equities and 0-20 per cent in cash and money market instruments. Investors will have the usual options to choose from - dividend, appreciation and bonus.

The proposal, if approved, will add to ING Vysya MF's diversified growth schemes, which now include ING Vysya Equity and ING Vysya Select Stocks as well as the newly-launched ING Vysya Nifty Plus. It is felt that the Radiant India Fund will be able to pick up stocks from a whole range of sectors, many of which are said to have performed well in the recent past. However, as the offer document has noted, the scheme will consider stocks from the general investment universe if adequate opportunities are not available (due to valuation considerations) in its primary universe.