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Birla MF launches GenNext fund

June 10, 2005 14:54 IST
Birla Mutual Fund on Friday launched its new equity fund offer - 'Birla India GenNext Fund', which will invest in equities of firms that are expected to benefit from consumption habits of young people in the country.

The new offer of the open-ended diversified equity fund will have dividend and growth options. The offer opens on June 14 and closes on July 12, Raghvendra Nath, head (strategic and business development), Birla Sun Life Asset Management Co Ltd said.

The new Fund would invest in companies across industries like auto, tourism, healthcare, banking, consumer durables and public sector that have at least 50 per cent of their revenues coming directly from sales to end consumers, he said. An investor would have to put in a minimum of Rs 5,000 to take part in the scheme, he added.

Asked about how much the fund was expected to mobilise through the offer, Nath declined to hazard a guess but said they expect "good collections and the benchmark would be the amount raised by similar funds in recent times."

Besides targeting companies that have brand identity for their products and services, the Fund will also focus on firms that are cash generating, have a predictable growth in earnings and are quick to adopt themselves to the changing needs of customers, he said.

Birla Sun Life, a JV between Aditya Birla Group and Sun Life Financials of Canada, has nine schemes in equity segment and 10 schemes in debt segment, with total assets under management of over Rs11,000 crore (Rs 110 billion).

In the total assets under management, equity funds account for 22 per cent.

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