``We are expecting a modest inflow of around Rs 30-40 crore. Looking at the state of the equity markets, it might not seem to be a good time to launch. But, we should offer to our investors a myriad of products to choose from. Also, the fact is that with whatever corpus that we garner it will be through our performance that new investors will get attracted,'' said the president and country head of Alliance Capital AMC, Ajai Kaul.

During the initial offer, the mutual fund has kept an entry load of 1 per cent and there is no exit load. Investments in the scheme will be eligible for tax benefits under sections 112, 80L, 54EA and 54EB.

``Whatever corpus is garnered in the new fund we will invest around 15 to 20 percent in the information technology sector. This is the only sector which is not affected by the cyclic behaviour of business and is recession proof,'' said the chief investment officer Alliance Capital, Samir Arora. ``The off-shore fund of Alliance Capital the India Liberalisation Fund has appreciated by 31 per cent as against the broader market indices. The fund has faced a redemption of $10 million in the past few months,'' added Arora.

According to Samir Arora at the micro level, the Indian companies offer the best opportunity for diversification. ``Due to the prevalence of MNC culture in India, there are about 150 MNCs operational, we are able to invest in some of the best managed companies the opportunity for which does not exist in other emerging markets. This also provides ample diversification and good stocks to choose from,'' added Samir Arora.

The CIO also said that their investment philosophy involved looking at long term capital gains, whether there was an opportunity within the company forsubstantial increase in earnings from the current, whether the company was looking at increasing shareholder value, the quality of management, the visibility of earnings, the RONW and ROCE are some of the important criterion.