The Hindu Business Line : Fund Update

The SEBI Board has approved guidelines for Real Estate Mutual Funds (REMFs). Such funds will be allowed to invest directly or indirectly in real estate properties within India, mortgage (housing lease) backed securities, equity shares/bonds/debentures of listed or unlisted companies, which deal in properties and also undertake property development in India and in other securities.

REMFs shall initially be close-ended and shall be compulsorily listed on the stock exchanges. The net asset value (NAV) of the schemes shall be declared daily.

ABN Amro Asset Management (India) has announced the appointment of Mr Prateek Agrawal as Head-Equities. He takes over from Mr Mihir Vora and will be in charge of equity-oriented schemes of ABN Amro Mutual Fund.

UTI Mutual has announced dividends in couple of its schemes. UTI Opportunities Fund and UTI Infrastructure Fund have declared dividends of 15 per cent and 30 per cent respectively. The record date for dividends under the both the schemes is July 3.

LIC Mutual plans to launch a close-ended equity fund, which will be automatically changed to an open-ended structure after two years. Named LICMF India Vision Fund, the scheme will identify and invest in undervalued small and mid-cap stocks.

Exposure to large-cap will be made to benefit from short-term moves. Up to 100 per cent of asset allocation can be made in equity and equity-related instruments, while a maximum of 20 per cent can be invested in debt and money market instruments.

The fund will be split into two classes. Class one will consist of stocks from sectors such as IT, pharma and other services, which have a vast pool of intellectual services. Class two will be in stocks of auto, engineering companies etc., that offer low-cost manufacturing opportunities.

200 Fund has changed the scheme's exit load structure. With effect from July 3, 2006, an exit load of 1 per cent is payable if units are redeemed or switched-out on or before one year from the date of allotment of units. The above is applicable for all transactions, whether routed through the systematic investment/transfer route or otherwise.

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