ING Vysya Mutual Fund Unveils Domestic Opportunities, Select Debt Fund

Mumbai, July 30 | Updated: Jul 31 2004, 06:15am hrs
ING Vysya Mutual Fund on Friday launched the initial public offering (IPO) of ING Vysya Domestic Opportunities Fund and ING Vysya Select Debt Fund. The issues will close on August 23. The fund aims to mop up Rs 4-5 billion in the two schemes. ING Vysya Domestic Opportunities Fund, an open-ended equity scheme, will invest in companies that derive a significant portion of their revenues from the domestic economy. According to the fund house, significant revenues indicates at least 50 per cent of the revenue coming from domestic sales provided the company has a minimum sales turnover of Rs 500 million or Rs 1 billion of domestic sales, whichever is lower.

The domestic opportunities scheme will invest at least 80 per cent of its assets in equity shares. The rest of the exposure will be maintained in cash or money market instruments.

The open-ended debt scheme, ING Vysya Select Debt Fund, will seek to maintain at least 70 per cent of its assets in debt instruments, out of which 45-60 per cent of investments will be in AA rated debt securities. The rest will be invested in cash and money market instruments.

The minimum investment in both schemes is Rs 2,000. The equity scheme will charge an entry load of 2.25 per cent for investments below Rs 20 million, while there will be no entry load for investments above Rs 20 million. There will be no exit load in the scheme.

There will be no entry load in the select debt scheme. Redemption less than Rs 10 million made within 180 days from the date of investment will attract an exit load of 1 per cent during the initial offer. There will be no exit load after 180 days.

On an ongoing basis, the repurchases below Rs 10 million within 180 days from the date of allotment will be charged load of 0.50 per cent, while there will be exit load for redemption made after 180 days. The debt scheme will not charge an exit load for repurchase above Rs 10 million. The BSE 100 will be the benchmark index for the domestic opportunities scheme, while ING Select Debt Fund will benchmark its performance against Crisil Composite Bond Fund Index.

Crisil MarketWire