February 29, 2008

MFs offer two more NFOs to the investors

Plan I

DSP Merrill Lynch Fund managers launches DSP Merrill Lynch Natural Resources and New Energy Fund

DSP Merrill Lynch Fund Managers  launched Natural Resources and New Energy Fund, an open ended equity growth scheme investing in companies which form a part of the Natural Resources, Energy and New Energy sectors.

A minimum of 65% of the scheme's corpus will be invested in Indian companies which form a part of these sectors. The scheme also has a provision to invest a maximum of 35% of its corpus in Merrill Lynch International Investment Funds – New Energy Fund and Merrill Lynch International Investment Funds – World Energy Fund and  through securities of companies domiciled overseas and principally engaged in the sectors of natural resources and alternative energy.

The New Fund Offer (NFO) will commence on March 3, 2008 and close on March 27, 2008. With strong growth in the levels of industrialisation and urbanisation in the emerging markets, the demand for natural resources is fast outpacing the levels of supply.

Investors can give investments in this sector an international exposure through BlackRock Natural Resources team  The scheme also has a provision to invest a maximum of 35% of its corpus in Merrill Lynch International Investment Funds (MLIIF) - New Energy Fund and MLIIF - World Energy Fund.

S Naganath, president and CIO said that the current rate of GDP growth witnessed in India and other emerging economies is likely to spur significant demand for Natural Resources and Energy. In addition, the world is beginning to address concerns for the environment due to global warming which has resulted in increased interest in the areas of alternative energy. A combination of these factors makes the theme for natural resources, energy and new energy a sustainable investment theme for the long term.

Scheme Features:

Minimum Investment:

Regular Plan: Rs. 5,000/- and multiples of Re 1/- thereafter

Institutional Plan: Rs 5 crore and multiples of Re 1/- thereafter
Options Available: 1. Growth
2. Dividend  (A) Payout (B) Reinvest

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Plan II

AIG Investments introduces Short Term Fund

AIG Investments has launched AIG Short Term Fund, an open ended income scheme. The primary investment objective of this scheme is to generate income from a portfolio constituted of short to medium term debt and money market securities. The scheme aims to invest the entire corpus in short term debt and money market securities.

The New Fund Offer (NFO) will open for purchase from February 29 to March 4. It will re-open for ongoing purchase or redemption no later than March 14. The fund will be managed by Sandeep Bagla, Chief Investment Officer (Fixed Income), AIG Global Asset Management Company (India ). 

Sandeep Bangla said in a statement, “Investors will benefit by investing in a fresh short term fund like the AIG Short Term Fund in March, a month when historically the interest rates have tended to be artificially high on the back of tight liquidity. Over a 2-3 month period, these interest rates on short to medium term corporate bonds tend to come down, leading to capital gains and handsome returns for the investors. We believe that this March, short term funds, as compared to 3 month Fixed Maturity Plans (FMPs), will be a superior option for investors.”