Pioneer plans to launch KP Information Technology, an infotech sector specific fund within next 4-6 weeks. The IT fund will primarily invest in scrips of software and software training companies although some investment will also be made in hardware stocks.

Normally the fund will have upto 100 per cent exposure in equities. KP Information Technology is not the first sector specific fund. There have been a few such funds earlier. MasterGrowth '93 had an investment focus in public sector under taking shares, Canexpo has an investment focus in export oriented units, ICICI Power has major investments in core sector, Taurus Newshare was to invest its corpus in initial public offerings while JM Basic invests in Petrochemical sector. The only true sector specific fund in India is the JM Basic Fund.

With information technology stocks zooming to record high in the past few month, most of the good stocks in the sector are today out of reach of common investors. KPInformation Technology fund could be a good way to take exposure in the sector with as little as Rs 2000. Specialised funds like KP Information Technology do have a narrow investment focus and the investors do have to remember that the more exotic or specialised a fund, the higher the investment risk.

Kothari Pioneer Mutual Fund also plans to launch two balanced funds. The schemes have been christened as KP Vista and KP Optima. Kothari Pioneer Vista, an open-end fund will seeks to optimise returns to investors by investing in a mix of debt and/or equity instruments. The fund managers will follow an active investment strategy taking defensive or aggressive postures depending on opportunities available at various points of time in the equity and debt markets.

The fund can have upto 100 per cent exposure in debt and upto 40 per cent exposure in equities. The fund will be available on a no-load basis. Kothari Pioneer Optima will be a three-year closed-end fund. The investment objective of Optima Fund is tooptimise returns by investing in a mix of debt and/or equity and equity related instruments. The fund can have upto 100 per cent exposure in debt and upto 50 percent in equities.

Payout by Indbank and LIC MFs

Indbank Mutual Fund has declared a dividend of 13.80 per cent in Swarna Pushpa (Annual Income option) for 1997-98. The fund has already paid 13 per cent income in Swarna Pushpa (monthly income option). The income pay out in Swarna Pushpa are in line with its promise. The Indian Bank Mutual Fund has also announced a dividend of 11 percent in Ind Ratna. Ind Ratna had made no pay out in 1996-97. Interestingly, Indian Bank Mutual Fund has announced no pay out in Ind Prakash for the second year in succession. The fund had "indicated" a pay out of 16 per cent for 1996-97 and 16.25 per cent in 1997-98 in its offer document. With the NAV at Rs 9.05, the fund can hardly afford to honour the indicated promise. LIC Mutual fund had declared dividend pay out in the following schemes. Dhanraksha 1989 -10per cent (against 6 per cent in the previous year) Dhanasahog -10 per cent (8 per cent); Dhan 80 CCB (1)- 19 per cent (15 per cent); Dhanavriddhi 1989 -12 per cent (12 per cent); Dhanshree 1991 -13 per cent (13 per cent). Dividend is payable to all unitholders .who are on the rolls of the above schemes as on May 26, 1998.