Financial Daily from THE HINDU group of publications
Saturday, Mar 04, 2006


Group Sites

Markets - New Fund Offer

Kotak Mahindra, Canbank moot open-ended equity schemes

Our Bureau

Kolkata , March 3

Two fund houses, Kotak Mahindra and Canbank, have mooted open-ended equity schemes that will invest across the multi-cap spectrum.

Offer documents named Kotak Multicap and CanMulticap have been sent to SEBI for approval.

The Kotak fund, to be managed by Mr Nitin Jain, will be benchmarked against the S&P CNX 500 index. It is expected to invest a minimum 65 per cent in equities. CanMulticap, with Mr K. Umesh Kamath as the fund manager, will have the BSE 100 as its benchmark.

Here, at least 85 per cent is likely to be allocated to equities.

Kotak Multicap, according to the offer document , will use bottom-up stock picking for investing in a range of sectors.

The plan is to select stocks that are priced at a material discount to their intrinsic value. Such intrinsic value will be a function of both past performance and future growth prospects, it is pointed out.

The fund, with a view to preserve capital in bearish market conditions, will be free to invest in debt or money market instruments up to 35 per cent of the portfolio.

CanMulticap will focus on fundamentally strong companies with scope for good growth over time. The fund will aim at reducing risk through adequate diversification of the portfolio. This will be achieved by spreading the investments over a diverse range of sectors.

This, incidentally, is the first offer document to be filed by Canbank MF after Mr B. Sukumaran took over as the MD of the asset management company.

More Stories on : New Fund Offer

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Kotak Mahindra, Canbank moot open-ended equity schemes

SBI MF mops up Rs 2,855 cr from Blue Chip
PruICICI bags `Asia Asset Management' award
Balanced funds may lock into higher equity pie
UK co hikes stake in Dewan Housing
Matherson buys stake in Herbertsons
ONGC may not sell IOC stake
Sideways movement
Mid-cap constructions to cool off?
Sensex snaps 4-day rally
VISA Steel fixes IPO price at Rs 57

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line