Birla Sun Life AMC Eyes Rs 30 Cr From New Scheme

Mumbai, January 28: | Updated: Jan 29 2003, 05:30am hrs
Birla Sun Life AMC hopes to garner Rs 25-30 crore from the initial public offering (IPO) of its new equity scheme christened the Birla Dividend Yield Plus.

The scheme has been designed to primarily invest in companies having a relatively high dividend yield.

The scheme is open-ended and aims to provide capital growth and income by investing primarily in a well diversified portfolio of dividend paying companies that have a relatively high dividend yield. The scheme has been benchmarked to the BSE Sensex and will endeavour to outperform the Sensex yield roughly by two times.

The scheme has been launched with the rationale that stocks of high dividend-yielding companies provide a high degree of protection during failing equity markets.

Alongside the factor of protection, the AMCs chiefs vouch for the fact that there is a strong possibility of stock prices appreciating should the equity markets revive.

As a risk-control measure, the fund will not invest more than 30 per cent in one sector and more than 10 per cent in one stock.

Investments will also be in low-beta stocks to minimise the loss when the index falls.

Primarily targeting the long-term, regular investor, the scheme will charge an exit load of two per cent if the investor makes a choice to exit within a year.

The scheme is open from January 23, 2003, to February 7, 2003. It offers two options growth and dividend. The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter.