• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Port Info

• Ships in Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• The Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Kolkata , Sept. 28

ING Vysya MF has lined up a fund to invest mainly in stocks of companies that draw at least 70 per cent of their revenues from Indian consumers.

Christened ING Vysya Retail Fund, the scheme will try to generate long-term capital appreciation by investing 75-100 per cent in equity and equity related instruments.

Considering the inherent characteristics of the scheme, equity positions would have to be built up gradually and also sold off gradually, the offer document filed with SEBI has mentioned, adding that this would necessarily entail having large cash positions before the portfolio is fully invested and during periods when equity positions are being sold off to book profits / losses or to meet redemption needs.

ING Vysya Retail Fund will be benchmarked against the BSE 100 index. If an investor (who may choose between growth, dividend and bonus options) who has entered during the New Fund Offer period decides to redeem, partly or wholly, then a contingent deferred sales charge (CDSC) would be applicable.

For amounts less than Rs 1 crore, a CDSC of 2.25 per cent will be levied if redemption request is made up to and including 180 days from the date of allotment. This will be nil if it is made after 180 days.

CDSC for Rs 1-5 crore will be one per cent if redemption request is made up to and including 90 days from the date of allotment.

This will be nil if redemption request is made after 90 days. CDSC for Rs 5 crore and above will be nil.

Plans contra fund: The MF has also worked out an equity scheme, named ING Vysya Contra Fund, which will seek to achieve capital appreciation from a diversified portfolio of companies that are fundamentally sound but are undervalued.

Undervalued stocks are of those companies whose true long-term potential is not yet recognised by the market.

At times, the broad market takes time to appreciate the true long-term potential of some fundamentally sound companies.

These stocks trade at prices below their intrinsic value, and, over a period of time, the prices reflect the intrinsic value of the underlying company, the offer document has mentioned.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Is the stock market boom a sideshow?

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line