Financial Daily from THE HINDU group of publications
Thursday, Jun 06, 2002
Canbank Invest plans to launch index-linked funds
BANGALORE, June 5
CANBANK Investment Management Services Ltd. (CIMS), the asset management arm of Canara Bank, plans to swell funds under its management to Rs 1,000 crore by March-end 2003, up 38.88 per cent from the current Rs 720 crore through the launch of new schemes, the Managing Director, Mr R.K. Madhukar, has said.
The company plans to launch an S&P CNX Nifty-linked index fund and a Sensex-linked fund "within two-three months".
"The plan is at a nascent stage now and we will submit an offer document to SEBI in a few weeks' time," Mr Madhukar said.
Meanwhile, the firm has received approval from the Securities and Exchange Board of India (SEBI) to launch an open-ended debt fund, Canincome. "We will be launching the plan by the middle of June," Mr. Madhukar said.
"We felt a gap in our product portfolio and hence this income fund," he said.
The new fund was aimed at retail investors and several investor centres across 15 towns such as Coimbatore and Mangalore would tap the retail base.
The focus was to "consciously gain more retail subscriber base from semi-urban areas," he added. The new fund is seen to complete its range of product offerings under its series of basic debt funds.
Canincome will offer growth plan with automatic repurchase option (systematic withdrawal plan), income plan, and bonus plan.
According to Mr Madhukar, the current stand-off between India and Pakistan was not likely to dampen sentiment in the equities market over medium-term time horizon.
The asset management firm is bullish on pharma and cement sectors. CIMS currently has four equity funds, three balanced funds, three debt funds (including MIP), and three closed-end tax-saving funds.
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