The fund will be a high risk-high return scheme where returns will move in tandem with the performance of four companies - Hindustan Lever, Vashisti Detergents, Ponds India and Hindustan Lever Chemicals. Ponds India has been merged into HLL, which will further limit the fund's investment in three companies.

``This fund is probably the first of its kind in the world where investments will be ownership specific,'' said a fund analyst. ``Since HLL commands close to 23 per cent weight in the sensex, any rally with HLL's participation will see ajump in the NAV of the fund,'' he added. The fund will have a duration of 10 years. Being an interval scheme, Lever fund will open for sale and repurchase of units during the first five business days of every month, starting six months from the close of the intial subscription offer. The units of the scheme will be not be listed on any stock exchanges.

The fund is targeting a minimum subscription of Rs 10 crore and a maximum collection of Rs 50 crore. The fund will not charge any entry load and initial expenses will be charged to the asset management company. An exit load of 2 per cent will be charged in case investors exit the fund in less than 36 months. The interval fund offers tax concesions under sections 54 EA and EB. The AMC is targeting a portfolio turnover of 75 per cent. The minimum subscription amount has been kept at Rs 15000 and in multiples of Rs 1000 thereafter.

The investment profile shows that the scheme will invest upto 70 per cent in equities of Unilever subsidiaries, 20 per cent inother equities and equity-related instruments and 10 per cent in debt to meet any redemption pressure. According to analysts, the fate of the fund will be linked to two sectors - FMCG and fertilisers. While Ponds, HLL and Vashisti are engaged in the FMCG sector, Hindustan Lever Chemicals manufactures fertilisers.