The Hindu Business Line : ING Vysya Mutual unveils upcoming biz fund

FUND LAUNCH: Mr Chris Ryan, CEO, ING Investment Management Asia-Pacific, with Ms Kavita Hurry, MD & CEO, ING Vysya Mutual Fund, at a press conference in Mumbai on Monday. - Paul Noronha

Mumbai , July 24

ING Vysya Mutual Fund has launched a new close-ended fund - ING Vysya CUB (Competitive Upcoming Businesses) Fund, focusing on investment in the competitive upcoming businesses.

The close-ended fund will be converted into an open-ended fund after three years.

The NFO opens on July 25 and closes on August 21.

Mr Paras Adenwala, Chief Investment Officer, ING Vysya Mutual Fund, said, "The fund would invest in around 50 stocks with strong upcoming businesses and track record of at least five years, out of which a large portion would be invested in mid-cap and small-cap stocks. The companies with high self-sustainability would fit the criteria."

The new emerging sectors with high potential could be retail, branded jewellery, medical tourism, food processing, bio fuels, micro finance, and development of SEZs among others, Mr Adenwala said.

He added that the CAGR of competitive businesses had increased manifold in the past five years leading them to introduce this scheme.

Mr Chris Ryan, Chief Executive Officer, ING Investment Management Asia Pacific (Hong Kong) Ltd, said, "The return on equity in India is much higher than other emerging markets like China and our fund will focus on the developing sectors in the economy."

Ms Kavita Hurry, Managing Director and Chief Executive Officer of ING Vysya Mutual Fund, said, "At ING, we introduce new processes and methods in the market. The CUB fund is close-ended to avoid the market volatility and get a stability of corpus for three years."

No exit load

There is no exit load and units can be redeemed once in every quarter. After the scheme is converted into open ended, systematic investment plan (SIP), systematic withdrawal plan (SWP) and systematic transfer plan (STP) will be applicable and the entry load would be 2.25 per cent for all SIP/STP applications.

The fund will go in for hedging only if the markets go into a deep downslide. CNX Nifty Junior will be the benchmark index for the fund.