The Hindu Business Line : Birla Mutual mulls 3 plans to widen portfolio service

BIRLA Mutual Fund has decided to introduce three separate plans - Value, Growth and Value-plus-Growth — under the Portfolio Advisory Service (PAS) it currently offers.

The theme-based options, for which the MF has sought regulatory approval, is expected to appeal to more high net worth clients, each of whom would prefer customised services. The MF, said Mr S.V. Prasad, CEO, hopes to cater to an increasing population of investors with the plans, including a critical number in the Rs 50 lakh-plus bracket.

For the latter, it would mandate only select distributors capable of providing quality service.

"The PAS will be one of our focus areas as we move up the value chain", he said, adding that the service would bolster the fund's plan to grow in stature. The MF, which now caters to over five lakh customers, is already in the process of revamping its branding strategy.

Elsewhere, it has started a new CRM initiative to fine tune its customer servicing systems.

The idea is to present itself as a complete fund house, armed ample range of products that meet the needs of various categories of investors. Incidentally, the IPO of its latest scheme — Monthly Income Plan II — has just closed for subscription. While the final collection figures are yet to arrive, it is expected that the `Wealth 25' variant has managed to mobilise more money compared to the `Savings 5' alternative.

In the first case, equity exposure is capped at 25 per cent and in the second, this is restricted to five per cent. The original MIP stays unchanged with a 15 per cent equity allocation limit.

Birla MF has recently launched a special plan for extra large investors in its liquid scheme, Birla Cash Plus. The `institutional premium plan', which requires a minimum initial commitment of Rs 20 crores, is marked by low expenses. This is expected to be a major draw for investors that can meet the requirement.

The MF would now like to promote the idea of paying redemption proceeds through ready-made but undated cheques. As things stand, up to 75 per cent of the redemption can be taken in this fashion - a concept that Mr Prasad felt should be leveraged by more investors.