Financial Daily from THE HINDU group of publications
Monday, Dec 20, 2004
Financial Daily from THE HINDU group of publications Monday, Dec 20, 2004 |
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Markets
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Mutual Funds Principal MF to launch Focussed Themes Fund Our Bureau
Kolkata , Dec. 19 PRINCIPAL Mutual Fund has lined up an equity scheme that will invest in stocks representing not more than six sectors at a time. The proposed Principal Focussed Themes Fund will seek to achieve capital appreciation by allocating to a maximum half a dozen sectors depending on their relative attractiveness. The offer, if approved by SEBI, is set to be a first in the country's MF industry, the only other scheme that comes anywhere close to it being Sundaram Select Focus. The latter, however, professes to invest in "a very few select stocks", without dwelling too much on the maximum number of sectors. While repurchase will be allowed at NAV-based prices, portfolio disclosures are expected at six-monthly intervals. The risk factors listed in the draft offer document sent to SEBI include the possibility of a very high level of concentration, which will particularly stand out when compared to a normal diversified equity fund. In fact, if the fund is invested in any six sectors at a given point in time, it would have to necessarily exit one of these if it has to invest even in a single stock from a sector other than these.
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