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Aabhas Pandya
New Delhi, August 5: Alliance Capital AMC is launching its maiden equity fund on August 17, thus completing its family of funds. The fund carries a novel feature of reinstatment service, whereby an investor, who has redeemed his units can re-enter the fund within 30 calendar days at the prevailing net asset value without paying the 2.25 per cent (maximum) entry load.
Christened Alliance India Premier Growth Fund, the fund will have a target allocation of 90 per cent in equity and 10 per cent in debt and money markets. The AMC has set an initial mobilisation target of Rs 1 crore and indicated a maximum ceiling of Rs 25 crore. According to analysts, collections may well surpass Rs 25 crore since the AMC has a good track record in managing equity portfolios inspite of the poor health of the equity market.
While Alliance '95, the AMC's balanced fund, has given a return of 48 per cent during the one year period ended June 30, returns in the tax planner are 30 per cent for the same period. The balanced fund New Delhi, August 5: Alliance Capital AMC is launching its maiden equity fund on August 17, thus completing its family of funds. The fund carries a novel feature of reinstatment service, whereby an investor, who has redeemed his units can re-enter the fund within 30 calendar days at the prevailing net asset value without paying the 2.25 per cent (maximum) entry load.
Christened Alliance India Premier Growth Fund, the fund will have a target allocation of 90 per cent in equity and 10 per cent in debt and money markets. The AMC has set an initial mobilisation target of Rs 1 crore and indicated a maximum ceiling of Rs 25 crore. According to analysts, collections may well surpass Rs 25 crore since the AMC has a good track record in managing equity portfolios inspite of the poor health of the equity market.
While Alliance '95, the AMC's balanced fund, has given a return of 48 per cent during the one year period ended June 30, returns in the tax planner are 30 per cent for the same period. The balanced fundhas an aggressive equity exposure and was one of the first funds to invest heavily in the IT sector. ``This may be, infact, just the right time to enter the market since the prices are very low with the Sensex hovering around the 3100 mark,'' says a secondary market participant.
For investments between Rs 1 lakh and Rs 10 lakh, the sales load will be 2 per cent while it will be 1.5 per cent for investments above Rs 10 lakh.
Premier Growth will provide for quarterly disclosure of portfolio. The initial issue expense has been kept at 3 per cent of which 1.5 per cent will be charged to the scheme while the other half will be borne by the AMC. The scheme will provide for systematic investment plan. The AMC currently manages four schemes - Alliance Liquid - an income fund, Alliance '95 - a balanced fund, Alliance Tax Relief - an equity-linked saving scheme and Alliance Cash Manager - a quasi MMMF.
The combined corpus under management is around Rs 150 crore with the bulk of Rs 103 crore under the income plan.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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