Financial Daily from THE HINDU group of publications
Thursday, Sep 01, 2005
Financial Daily from THE HINDU group of publications Thursday, Sep 01, 2005 |
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Markets
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Mutual Funds StanChart plans to cap asset size at Rs 300 cr for its Premier Fund Nilanjan Dey
Kolkata , Aug. 31 STANDARD Chartered MF, which has lately forayed into equity funds, has proposed to temporarily restrict the asset size of its forthcoming equity product to Rs 300 crore. Standard Chartered Premier, as the fund has been christened, will be positioned somewhat "differently", maintained Mr Naval Bir Kumar, CEO of the MF, while referring to some of its features, including a relatively high minimum investment (Rs 25,000), a distribution initiative conducted only through select intermediaries and atypical investment strategies. The scheme is aimed at those who are willing to stay invested for three to five years, the MF has pointed out. A one per cent exit load will be charged if redemptions are sought before a year. "The fund manager will try to capture promising themes in their infancy," Mr Kumar mentioned. Given some of the recent trends, aviation, ethanol production and high-end textiles (characteristically aimed at home décor) are some of the themes that may be considered. Software, it is mentioned by way of example, was a promising theme in 1994, a time when it was merely a tiny sector waiting to flourish. It may be mentioned here that imposing a pre-determined limit on asset size is an unusual - but not unheard of - move. In recent times, a few such steps have been taken, including one by HSBC MF. The latter restricted the initial corpus of HSBC Midcap to Rs 700 crore. The forthcoming scheme will be in a way different from the MF's maiden equity offering - Standard Chartered Classic. The latter had a lower investment requirement and was distributed through all and sundry.
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