Canbank raises stock exposure limit in balance fund

Canbank raises stock exposure limit in balance fund
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First Published: Wed, Jun 13 2007. 12 34 PM IST
Updated: Wed, Jun 13 2007. 12 34 PM IST
Reuters
Mumbai: Canbank Investment Management Services Ltd said on 13 June it had altered the asset allocation pattern of CanBalance II Scheme, allowing it to invest more in equities.
The asset manager has raised the fund’s maximum permissible exposure to equities to 75% of assets from 65%. The fund will invest at least 40% of assets in stocks.
This will help the fund house categorize CanBalance II as an equity-oriented fund and pay lower capital gains tax.
As per Indian regulations, a fund is categoried as equity-oriented scheme if it invests at least 65% of its assets in domestic equities.
The fund’s exposure to debt and money market instruments would be in the range of 25-60% of the assets, the fund house said.
The changes would come into effect from 20 July and till then investors have been given an option to redeem their units without paying any exit load.
The fund house managed assets worth about Rs2,900 crore ($716 million) at the end of May, data from Association of Mutual Funds in India showed.
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First Published: Wed, Jun 13 2007. 12 34 PM IST
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