Birla Mutual Fund plans two new schemes

Our Markets Bureau
22 August 2002

Birla MF chief investment officer Bharat Shah says the offer documents for these two schemes have been filed with the Securities and Exchange Board of India and after the approval from the regulator it will be launched.

Mid-Cap Fund will invest in stock of companies with market capitalisation between Rs 150-1,500 crore, Shah says. “The scheme intends to investment in around 30-35 companies’ shares. The Index Fund will invest in S&P CNX Nifty stocks.”

Birla MF is also planning to reduce the number of stocks in its largest equity fund — Birla Advantage Fund — with a portfolio size of Rs 338 crore as on 31 July 2002. Till last month, the scheme had invested in over 50 companies’ stocks and it plans to reduce to 30-35 stocks.

Shah says in the past few months, the investment universe has expanded, providing several investment opportunities. “This has resulted in an increase in the number of stocks the fund owes.”

On the current state of equity market, Shah says the markets are attractively poised, with the Bombay Stock Exchange Sensex at a low P/E ratio of 12 and interest rates at historic low. “In addition, there is surplus liquidity in the system, more injected through open offers and buybacks.”