New Delhi, April 10: Thanks to the recent IT battering on the bourses, DSP Merrill Lynch Asset Management Company has extended its initial offer for two funds - Technology.com and Opportunities Funds - by one week. The initial offer period for the two schemes has been extended from April 10 to April 18.Although the markets have bounced back after a crash in prices earlier, the volatility at the software counters seems to be a cause of concern for investors, according to a Delhi-based fund analyst. This seems to have affected, in terms of investor response, the two initial offers from DSP Merrill Lynch, the fund analyst added.
Also, the investor appetite for technology funds seems declining as six technology funds have already collected whopping Rs 2357 crore from the market, the fund analyst said. Alliance New Millenium Fund has collected Rs 540 crore from its initial offer, Prudential ICICI Technology Fund Rs 500 crore, IL&FS e-Com Rs 197 crore, Sun F&C Emerging Technology Fund Rs 252 crore, K-Tech from Kotak Rs 213 crore and Kothari Internet Opportunities Fund Rs 555 crore.
However, with the extension of the two funds, the DSP Merrill Lynch AMC (India) is confident of getting an encouraging response from the investors and the fund is cashing in on the current rally in software stocks propped up by result expectations. According to Alok Vajpeyi, the chief operating officer of DSP Merrill Lynch AMC (India), ``With the recent correction, this is the opportune time for investors to get back into the equity markets. We believe that we are well positioned in this market.''
The two funds - Opportunities Fund and Technology.com Fund - were opened for subscription on March 11. The minimum application size in two funds is Rs 5,000 and the funds target a minimum amount of Rs 1 crore each from their initial offers. The funds give growth and dividend option and have an entry load of 2 per cent. Techology.com Fund will focus on technology and technology related sector.
Opportunities Funds, a high risk and high return fund, will focus on stocks like lifestyle, pharma, cyclicals and technology. At a given point of time, the fund will not be invested in more than two sectors. The fund requires a nimble-footed style of fund management and the fund manager cannot afford to invest in illiquid stocks. The fund could have a high portfolio turnover.
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