DSP Merrill Lynch Gung-ho On Pace Of Economic Reforms

Hyderabad, April 28 | Updated: Apr 29 2004, 05:30am hrs
Will the next government propel the incomplete economic reform agenda further vis-a-vis its predecessor At least the mutual fund managers are gung-ho about it. Mr Alok Vajpeyi, president, DSP Merrill Lynch (DSPML) Fund Managers goes one step ahead to say that even the index would touch 7,000-mark before the end of the current year.

Which ever party may form the next government, we are very bullish on the fundamentals of Indian economy since it is on a firm footing, Mr Vajpeyi predicts. Even the corporates are likely to report encouraging results in the current year, he added. Mr Vajpeyi was in Hyderabad to launch the companys three new mutual fund schemes including TIGER (The Infrastructure Growth and Economic Reforms Fund) Fund. The mutual fund manager further opined that the market fluctuations are expected in the short-term, ie of three to six months, however, the index would touch its peak at 7,000 mark in the current year itself.

Mr Vajpeyi felt that the Indian economy might go through massive structural changes, however, it could have a far reaching impact. Though, there can be short-term uncertainty due to change in the governance, it would not impact the overall economic growth, he pointed out. The companys TIGER Fund mostly targets sectors where the reforms are underway. The objective of the Fund is to cash in on the anticipated benefits from the infrastructure developments and the resultant value creation there from.

The company plans to mop up funds to the tune of Rs 250 crore to Rs 300 crore via the initial offer. The other two funds - Savings Plus Fund (Aggressive) and Savings Plus Fund (Conservative) - are likely to generate a fund size of Rs 450 crore to Rs 500 crore.