Called Birla Balance, the open-ended fund, opened for subscription on Monday. The fund will invest over 51 per cent of the resources in equities, which will enable it to declare tax-free dividend. Priced at Rs 10 the minimum investment is Rs 3,000. The initial offer will be at no load and the NAV of the scheme will begin at Rs 10 a unit.

Chief Investment Officer Bharat Shah is not worried about the timing of the fund's launch which coincides with a rising market. ``Timing is not everything. What is significant is identifying companies with good management, good business and an acceptable price for the stock,'' he explained. Shah believes thatthe distinction of stocks into various categories like growth stocks, cyclicals etc. is theoretical. ``The focus instead should be on long-term fundamentally driven values,'' he adds.

The product is being offered with two plans -- Plan A with dividend option and Plan B with growth option. The initial offer will be open till October 4. The scheme will reopen for regular sale and repurchase from November 4. Birla Advantage Fund, Birla TaxPlan 98, Birla Tax Plan and India Advantage Fund are among the equity funds of Birla Mutual Fund.