The Hindu Business Line : `Enough scope for new innovations in debt funds'

THE ING Vysya MF that one sees today is a fund house with an attitude. In a market that is so ruthlessly competitive, it seems to be turning more ingenious, at least so in terms of new offerings. The idea, as Ms Kavita Hurry, MD & CEO, tells Business Line, is to expand the range of products to the extent possible. "At the end of the day, each investor must have the products that suit him best," she states.

Excerpts:

What has been your experience with the MIP that you introduced recently?

I think we have managed to collect what can be rightly called `sticky money'. In other words, the plan has appealed to those who are ready to stay invested for a decent length of time.

In fact, we don't quite encourage the get-in-and-get-out sort of clients to come into the MIP. They would need to check out other options, which are substantially different in nature.

Smaller investors, including those who put in regular amounts, however minor such quantities might be, are more welcome.

The MIP has a Plan A, which is completely debt oriented, as opposed to a Plan B, which allows a controlled exposure to equity. Investors are free to choose, depending on their risk profile and expectation of returns.

When you talk about new schemes, what are you referring to?

A floating rate fund, to start with. This is, as you would appreciate, the flavour of the season. Simply put, the market wants it. With traditional debt schemes becoming passé, more and more investors are looking at floating rate alternatives.

We will introduce our own version once our latest launch exercise is wrapped up effectively... I am talking about the two new schemes we have come up with - one equity and the other debt. Another equity fund, which will invest in textiles and pharma, is also in the works. These two sectors are expected to gain from the proposed dismantling of trade barriers in the context of WTO.

There is little room for further innovation on the debt side as far as product development is concerned. Do you agree?

Not really. On the contrary, there appears to be enough scope and opportunity. In fact, this could well be the time for creating more engaging options for debt fund investors. Just think about our attempt to devise a product that will capture the gains set off by credit rating upgrades.

The market probably tends to believe that it is easier for fund houses to be innovative when it comes to developing equity offerings. But the challenge before them assumes bigger proportions when they have to retain those who have seen the prime days of debt funds.

Returns from debt have come down radically in recent times and this has prompted certain quarters to pursue equity strategies more aggressively. Such a trend may continue for some more time till we have more clarity.

Going forward, expansion will be a big issue for ING Vysya MF...

True. The last few months have seen some initiatives from our side. We are trying to utilise the strengths developed by the parent bank. There is need to widen our network and be available to newer categories of investors. We are tapping distributors in the best manner possible under the circumstances.

More Stories on : Interview | Mutual Funds

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

Stories in this Section
Kaale megha, kaale megha paani to barsaao

Floating rate funds - spreading on

Shed a tear or two for regional bourses

Price, premium fall sharply

BSE revises special margin on 18 scrips

As global pressure increases on equities — Indices may suffer amid volatility

`Enough scope for new innovations in debt funds'