New Delhi: Asset management company, Lotus India AMC which is a joint venture between Fullerton Fund Management Group and Sabre Capital Worldwide, has announced the launch of its Open-Ended Equity Scheme: Lotus India Equity Fund.
The investment objective being to generate long-term capital growth from a focused portfolio of predominantly equity and equity-related securities. An open ended equity fund which aims to balance ‘concentration’ and ‘diversification’ risks and goes for diversification in a focused manner, it is priced at Rs10 per unit (plus applicable entry load) and will open for initial subscription from August 16, 2007 and close on September 7, 2007.
The fund will re-open for ongoing purchases/redemptions no later than October 5, 2007 and will invest 70-100% in equity and equity related instruments and 0-30% in debt and money market instruments. The fund offers two options i.e. Growth and Dividend. The Dividend option offers Dividend Payout and Dividend Re-investment facilities.
Lotus India Equity Fund will follow the following self imposed guidelines while implementing its investment strategy:
* Not less than 15 stocks and not more than 30 in the portfolio
* Not less than 5 sectors in the portfolio and not more than 10 sectors (Sector definition would be “Industry Level” in AMFI classification)
* Not less than 2% exposure to a single stock (excluding IPO investments)
* Not more than 10% exposure to a single stock at the time of investment
* Active hedging to manage risks
Ajay Bagga, chief executive officer, Lotus India AMC said, “The fund aims to strike a balance between concentration and diversification risks. It adds to our range of Equity product offerings and caters to the growing segment of equity investors looking at adding a slightly more aggressive equity product to their portfolio.”