The Hindu Business Line : StanChart Mutual Fund plans Enterprise Equity scheme

The proposed Standard Chartered Enterprise Equity Fund, which will enable investors to avail themselves of long-term capital gains and indexation benefit, will aim at growth of capital from a portfolio of mainly equity and equity-related instruments.

It may also invest in debt and money market instruments to generate income.

The scheme, the offer document sent to SEBI has mentioned, will provide for liquidity at the end of each calendar quarter at the relevant NAV, subject to load.

The NAVs will be generally declared on Wednesdays.

Under normal circumstances, at least 65 per cent of the net assets is likely to be allocated to equity and equity-related instruments. Investment in derivatives will be up to the limits permitted by SEBI's regulations governing mutual funds. The exact repurchase schedule will be announced at the time of launching of the scheme.

The MF has named Mr Kenneth Andrade and Mr M. Kannappan as the fund managers.

"The scheme will endeavour to invest in well-managed businesses whose shares are available through the primary market at reasonable value through a process of disciplined research. The portfolio of securities could be concentrated in a particular sector or well diversified depending on prevailing offers at that point of time," the offer document has stated.

Equity funds performance

THE equity products currently managed by StanChart MF - Classic Equity and Premier Equity - have provided about 21.5 per cent and 0.9 per cent returns since their inception in July 2005 and September 2005 respectively.

Classic Equity, the MF's first attempt to manage equity assets after consistently offering debt products, has a fairly diversified portfolio. Large allocations include Reliance, Subex Systems, Amtek Auto, Bharat Forge and Bajaj Hindustan (pertaining to November 30, according to Value Research).

It has an asset base of about Rs 900 crore. The top holdings of Premier Equity are Amtek Auto, Maharashtra Seamless, SRF, SpiceJet and Emco. The fund, which had Rs 312 crore under management on November 30, tries to invest in businesses with good long-term potential.

Its NAV stood at Rs 10.09 as on January 2.