Tuesday, April 04, 2006

The thematic mutual fund

In a country where the stock market is racing on steroids, can mutual funds be far behind? Hindu Businessline reports on some new themes that have been launched.

A tidal wave of NFOs has hit the market in the last few years, many of them competing products that seem to be merely carrying different tags.

Sahara MF has worked out a fund titled R.E.A.L., an abbreviation that stands for Retail - Emerging And Leaders. Deutsche MF has conceived a scheme - Green India Fund - that will identity companies focused on rural India. ING Vysya MF has fashioned what has been called Core Industries Fund. There are others, each telling a story of its own.

This is but a tip of the iceberg. ABN Amro has a Future leaders fund. Sundaram has launched a fund with a rural focus. There was a recently launched that focussed on the new sectors - like mobile phones, multiplexes - I forget who launched it.

Reminds me of the last boom during 1999-00 when there were funds that tried to capture every pocket of the tech sector. Today most of them languish sub NAV. Where these funds will go, we will know in a years time when the markets have cooled off.

No comments: