The Hindu Business Line : ING Vysya Mutual plans to tap textiles, pharma sectors

THE dismantling of barriers set by the World Trade Organisation has prompted ING Vysya MF to work out India's first fund that will almost exclusively focus on the two sectors that are likely to gain significantly from the situation - textiles and pharmaceuticals.

The MF hopes to unveil a special scheme, christened ING Vysya TAP (Textiles And Pharma), to capitalise on what are expected to emerge as positive trends for the two sectors. A number of stocks in both sectors may well see upsides in the coming days, it is felt.

TAP, said Ms Kavita Hurry, MD & CEO, will present a serious effort by the MF to seize opportunities in the context of the WTO move. Textile quotas are being dismantled from January 2005, an event that is being awaited eagerly by countries like India. In fact, a number of the listed textile stocks are already buzzing on the bourses.

"Investment by the proposed scheme will be limited to not one, but to two sectors. This will make it relatively less risky," she said. The scheme will be able to act as a good diversifier for investors who have already allocated to broadbased growth funds, she added.

The MF, it may be mentioned, has already taken exposure to both textiles and pharma. ING Vysya Select Stocks Fund, for instance, has invested in the likes of Sun Pharma, Biocon, Lupin and Wockhardt as well as in Arvind Mills and Raymond. The two sectors accounted for 18.7 per cent and 3.8 per cent respectively of its net assets as on June 30.

ING Vysya Equity Fund has picked up IPCA Lab, Biocon, Matrix etc, which contributed to 6.6 per cent of its portfolio on that date. It also has a small exposure to Arvind Mills.

ING Vysya Nifty Plus Fund, which is linked to the 50-share S&P CNX Nifty index, has in its portfolio scrips like Ranbaxy, Dr Reddy's, Sun Pharma, Cipla and Glaxosmithkline. Pharma made up 4.8 per cent of its net assets end-June.

Name change at SEBI's behest:

The name `ING Vysya TAP' has been chosen after SEBI advised the MF to choose a more appropriate name for what was originally called ING Vysya WTO Theme Fund, Ms Hurry told Business Line.

The initial offer document had referred to inter alia the increasing opportunities in the generic pharmaceutical industries. The basic investment objective was to seek capital appreciation by picking up companies that will benefit from increased global trade following breaking down of barriers in 2005 and the opening up of the pharmaceutical market worldwide for generic companies, on expiry of product patents.

The MF for now will focus on its two latest offerings - Select Debt Fund and Domestic Opportunities Fund.