Financial Daily from THE HINDU group of publications
Monday, May 20, 2002
Financial Daily from THE HINDU group of publications Monday, May 20, 2002 |
|
|
|
|
|
Markets
-
Mutual Funds Alliance Capital plans to expand investor base Aparna Krishnan
MUMBAI, May 19 ALLIANCE Capital is targeting one million investors in the next two years. Mr Nikhil Johri, Chief Executive Officer, Alliance Capital Asset Management India Private Ltd, has said that the mutual fund plans to increase its presence in ten other cities. Currently, the mutual fund has about three lakh investors and is looking at increasing it by not only establishing in other cities but by also increasing penetration in big cities such as Mumbai and Delhi. "We would like to increase penetration in cities such as Mumbai and Delhi and tap the middle and high net worth individuals, who are now looking at other investment options," Mr Johri said. There has been a shift in investment options since returns from debt instruments are no longer attractive. "More and more investors are now looking at the equity market as opposed to the debt market. The debt market is no longer attractive in terms of returns since it is taxable," he said. Also, the performance of equity funds is encouraging. "In the last six months, iour Diversified Equity Fund has appreciated by more than 30 per cent and Technology Fund by about 70 per cent," he added. With this shift, Alliance is expecting to up its stakes in the equity market by about 15 to 20 per cent. "Currently, the ratio of our investments in debt and equity markets is 65:35. This ratio will become 50:50 shortly and increase in favour of equity," Mr Johri said. Alliance Capital presently manages funds worth Rs 1,200 crore. "Our total investments which includes offshore funds and foreign institutional investors (FIIs) in the Indian equity is about Rs 4,000 crore," Mr Johri said. Alliance is also planning a promotional and advertising campaign and has allotted about Rs 3-4 crore for advertising this year.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, 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
|