Business Daily from THE HINDU group of publications
Wednesday, Aug 30, 2006
Business Daily from THE HINDU group of publications Wednesday, Aug 30, 2006 |
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New Fund Offer Web Extras - Children & Parenting Our Bureau
Kolkata , Aug 29 Tata Mutual Fund has lined up a 10-year close-ended fund with two investment options, aimed at those who wish to plan for their children. The proposed Tata Children's Fund will provide debt and equity plans, identified in the offer document as Savings Scheme and Investment Scheme respectively. Each will try to generate capital appreciation through a blend of equity, debt and money market instruments. The savings portfolio, which will invest chiefly in fixed income securities, will aim at providing safety and returns. The fund manager will be free to move between short- and long-term floating rate paper as well as money market instruments. The investment portfolio, with its focus on equity, will seek to enhance returns on capital. A mix of top-down and bottom-up approaches will be used for investing in equity and equity-related instruments. In normal circumstances, the savings scheme may invest up to 70 per cent of its assets in debt and money market instruments. In the case of the investment scheme, at least 65 per cent will go into equity, a figure that may be scaled up to even 100 per cent if required. The offer document filed with SEBI has identified Mr Murthy Nagrajan and Mr Venugopal M as the fund managers. Not too many players in the MF sector have mooted 10-year close-ended products in recent times, it is pointed out.
Low asset base
The few self-styled children's funds that are available today are constrained by low asset bases, according to fund distribution sources. They added that these funds have by and large failed to convince investors, who have been far more focused on `normal' diversified funds, especially those that do not carry such labels. Leading the pack is HDFC MF's fund for children, which had about Rs 99 crore as on July 31, 2006 followed by Prudential ICICI Child Care, which managed Rs 75 crore or so. Funds managed by Principal and Franklin Templeton are far smaller in size, according to Value Research. The asset figures, pertaining to their `gift plans', mostly underscore debt allocations.
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