The Hindu Business Line : ABN Amro MF lines up plain vanilla schemes

ABN Amro Mutual Fund has lined up its maiden schemes, all of them plain vanilla products. The fund, which has sought regulatory clearance, proposes to bring to the table an equity fund, a monthly income plan, a dynamic debt fund, a floating rate fund and a liquid fund.

ABN Amro Equity Fund will be a diversified scheme with Nifty as the benchmark index. Its investment strategy will have a bias towards large and medium cap companies.

The MIP will have a large debt component with restricted room for stocks. Its exposure to equity will be limited to 15 per cent of the assets under normal circumstances.

The dynamic debt fund will typically invest 70 per cent of its assets in debt securities with maturity of over one year.

Around 75 per cent of the assets of the floating rate fund will be in floating rate debt and money market instruments.

The three debt funds will all provide regular and institutional plans, with different minimum investment criteria, according to the offer document sent to the SEBI.

As for the floating rate product, both the plans will have monthly dividend options.

The liquid fund, called ABN Amro Cash Fund, will have growth and weekly dividend options in its regular plan, with compulsory dividend reinvestment. The institutional plan will have growth and daily dividend options.

The MF has named Mr Mihir Vora as the fund manager for its proposed equity scheme.

There would be two other fund managers - Mr Rajiv Shastri (for the MIP and the dynamic debt product) and Mr R. Sivakumar (for floating rate fund and liquid fund). The fund has appointed Deutsche Bank as its fund accountant.