AIG India Equity Fund eyes Rs 1,500 cr mop-up

"The fund is eyeing Rs 1,200 crore to Rs 1,500 crore of subscription," said Tushar Pradhan, Chief Investment Officer - Equities, who will manage the fund.

The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities including equity derivatives.

The fund will remain fully invested - up to 95% in equity and equity related securities and will have only 5% in short term debt and money market instruments to meet short term liquidity requirements of the scheme.

The fund has the flexibility to invest across companies without bias towards a particular sector, investing style or market capitalisation range.
 
This open ended equity scheme has two plans, regular and institutional, which will have a common portfolio. However, the returns under each plan are expected to vary with regard to specified expense ratio under the relevant plan. The scheme, however, does not assure or guarantee any returns.

The regular plan has an entry load of 2.25% if the purchase amount is less than Rs 5 crore. Investments above Rs 5 crore will not have any entry load.

Under the regular plan, an exit load of 1% will be charged on investments less than Rs 5 crore and if redeemed within a year from date of allotment. On investments above Rs 5 crore, the entry load will be 0.5% of the applicable net asset value.

There is no entry load under the institutional plan. The exit load will be 0.5% if redeemed six months from allotment date.

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