Mumbai, Mar 30: Alliance Capital Mutual Fund is planning to launch a pure equity fund. Also on the anvil is a fund which will invest in the overseas markets. Alliance plans to unveil the fund once the Sebi guidelines on the same are framed.In the case of the domestic equity fund, Alliance Capital will be approaching Sebi for its approval in April. The pure equity scheme is likely to be an open-ended one with no assured returns. According to Ajay Kaul, president and country manager of Alliance Capital Asset Management Pvt Ltd, "We are launching an equity scheme as 1997 has been a good year for equities and we have been prudent to identify the good companies in time to make smart investments".
Talking about the fund for overseas investment, Kaul said that it is still on the drawing board and will, in all probability, be a balanced fund. But the parameters will be decided only after the guidelines for the same are finalised by the markets regulator. Sebi is framing the guidelines for mutual funds to float afund of up to $50 million for investment in the overseas markets.
As for the existing schemes of the fund, the net-asset value (NAV) of Alliance'95 has appreciated by 70.39 per cent to Rs 15.37 as on March 27, 1998 from its December 1996 figure of Rs 9.02. In December 1997, Alliance'95 had an exposure of 69.33 per cent in equity, 25.56 per cent in fixed income and 5.11 per cent in cash and money market instruments.
The industry-wise composition comprises 21 per cent in information technology, 8.35 per cent in downstream oil and gas, 6.99 per cent in banks and 6.42 per cent in foods and beverages, among others.
The other two existing schemes of Alliance Capital are Alliance Capital Tax Relief '96 and Alliance Liquid Income '97. The Capital Tax Relief scheme has been doing well with a cumulative return of 70 per cent and an annualised return of 33 per cent. The latest NAV of the scheme as on March 27 is Rs 17.05.
Alliance Liquid Income, which is an open-ended scheme, aims at providing liquidity toinvestors and has 76.41 per cent of its investment in corporate debt with an average portfolio maturity of one-and-a-half years.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
