The Hindu Business Line : Canbank MF launches infrastructure scheme

CanInfrastructure, as the scheme has been labelled, will be benchmarked against the BSE Sensex. It will select stocks from among a number of areas, many of which are set to absorb greater spending by the Government in the days ahead. These range from engineering and construction to telecom and transportation. Further, areas such as banking, financial services, healthcare, power and oil & gas will be part of the fund's investment universe.

A minimum 75 per cent of the fund's assets will be allocated to equity and equity-related instruments, including derivatives. A maximum 25 per cent may be invested in debt and money market instruments.

Mr N.R. Ramanujam, Managing Director of Canbank MF, said the fund is based on the premise that India will need to earmark significant resources to upgrade its infrastructure on many fronts. "A number of companies stand to benefit from the investments that are expected to be made. These will be our targets," he said.

"One of the key constraints for Indian corporates to become globally competitive is inadequate infrastructure," the offer document filed by the MF with SEBI for clearance has mentioned. It added that huge investments would have to be made in power generation, telecommunications, roadways, and other segments.

Investors have been homing in on infrastructure companies in larger numbers, Mr Ramanujam felt. It may be mentioned here that Tata MF has recently introduced a similar scheme; the latter had an NAV of Rs 11.25 on June 24.

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