Sep 26, 2007, 04.36 PM | Source: Moneycontrol.com
Lotus India Mutual Fund launches Lotus India Infrastructure Fund a three-year close-end equity fund that would invest in companies engaged in development of infrastructure.
The New Fund Offer priced at Rs.10 per unit opened for subscription on September 25, 2007 and will close on October 24, 2007. The fund will invest 65-100% in equity and equity related instruments of companies engaged in infrastructure sector and 0-35% in debt and money market instruments.
Lotus India Infrastructure Fund is a closed ended equity fund with a maturity of three years which aims to provide long term capital appreciation by investing in a portfolio that is predominantly constituted of equity and equity related instruments of infrastructure companies. Infrastructure companies’ means companies engaged, directly or indirectly, in infrastructure development and growth of Indian economy.
Speaking on the occasion, Ajay Bagga, Chief Executive Officer - Lotus India AMC said, “Infrastructure development plays a vital role in the development of the country’s Economy and GDP growth. With robust growth in the Indian Economy post liberalization, there is an increased demand on the country’s already stretched infrastructure. We believe that the pace of infrastructure growth in India is set to accelerate in the near future. There are numerous opportunities that exist in this sector and we believe that our Fund can help capture these opportunities and help create wealth for investors in the long term. This Fund also adds to our range of Equity products offered and will cater to the growing segment of equity investors looking at long term investing opportunities in a high growth sector like infrastructure”.
The scheme offers two options - Dividend and Growth. Minimum investment is Rs 5000. The fund will not an charge entry fee but those exiting before maturity will have to pay balance unamortised initial issue expenses. Indian regulations allow close-end equity funds to charge issue expenses of up to 6 per cent of their collections.
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