The Hindu Business Line : AIG, JP Morgan line up equity fund plans

The AIG Infrastructure and Economic Reform Fund, as the name suggests, will try to maintain a diversified portfolio comprising equities of companies involved in the country’s economic development as a result of “potential investments in infrastructure and unfolding economic reforms.”

This will be benchmarked against the BSE 100 index.

AIG’s proposed mid-cap fund will seek to have at least 75 per cent of its assets invested in equities and equity-related securities.

Mid-cap companies have been defined as those that have a market cap of Rs 500 crore and more – but greater than the company with the highest market cap in the CNX Midcap index.

The latter has been selected as the benchmark.

JP Morgan India Smaller Companies Fund, which will also have the CNX Midcap index as its benchmark, will aim at generating long-term capital appreciation from a portfolio that is substantially constituted by equity and equity-related securities focused on smaller companies, the offer document said.

The fund’s investment universe will be made up of companies constituting the “bottom third by way of market capitalisation” of stocks listed on the NSE or the BSE.

However, other equities may also be included in order to achieve optimum results.

There will be no bias towards any particular sector.

For both AIG and JP Morgan, these funds will add critically to their existing basket of products.

Both commenced operations in India recently.

Each has started with a diversified equity fund.

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