The growth plan will enable unitholders to take certain tax benefits. Since there is no dividend, the growth plan's earnings will result in a higher net asset value. There is no tax deduction at source for Indian residents.

Besides, unitholders enjoy the benefits of Section 112 of the Income Tax Act which provides that capital gains chargeable on the transfer of long term capital assets are subject to tax at 20 per cent after indexation.

Unitholders have been given the option to switch all or part of their investment to the growth plan at no cost. All subsequent switches between the dividend and the growth plans will be done at the respective NAVs with no sales load.

The Alliance Mutual Fund currently charges a sales load of 2.25 percent on value up to Rs 1 lakh, two per cent on value between Rs 1 lakh and Rs 10 lakh and 1.5 per cent on value above Rs 10 lakh. There is load on NAV on redemption of these units.

However, the mutual fund may introduce a redemption load at a later stage. If introduced, the load will be applicable to investments made only after the announcement of a load.

The revised offer document of Alliance '95 also incorporates borrowing powers up to an amount equal to 20 per cent of the net assets of the scheme for the purpose of meeting temporary liquidity requirements for redemption of units or payment of dividend to unitholders.

In keeping with industry trends, the Alliance '95 has now provided for automatic investment and withdrawal plans for unitholders. This will allow unitholders to make regular deposits/withdrawals.

Other new features include inter-scheme and intra-scheme switching options (Reinstatement Privilege).