Birla Sun Life MF launches close-ended equity fund
Mumbai: Birla Sun Life Mutual Fund has launched a five-year close-ended equity fund, Birla Long Term Advantage Fund. The fund aims at providing long-term capital appreciation by investing predominantly in a diversified portfolio of equity and equity-related securities. It would consist of a portfolio of reasonably priced stocks that are expected to post attractive growth in three to five years.

According to the company the five-year closed-ended equity fund is aimed at those investors who want to maximise returns without being worried over volatile stock markets.

The new fund offer opens on August 7 and closes on September 8 and offers two plans — dividend and growth. There is no entry or exit load, however, investors who redeem before the maturity period, will bear unamortised expenses of the issue expenses on the applicable net asset value.

The company said the probability of positive returns in five-year periods in equity has been 87 per cent while for one year it has been 63 per cent. Thus five-year period will give huge consolidated returns.
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SEBI issues norms for MF overseas investment
Mumbai: SEBI has issued guidelines on investments by mutual funds overseas. It has said that only those Indian mutual funds, which have been in existence for a minimum period of 10 years, would be eligible for investing in Exchange Traded Funds (ETFs) abroad.

The Government had allowed investment of $2 billion by Indian mutual funds in various instruments overseas. Of which, $1 billion can be in ETF.

They should also follow a sub-ceiling for investing in ETFs, which prohibits them from investing more than 10 per cent of the net assets managed by them as on March 31 of each relevant year, subject to a maximum of $50 million per mutual fund.

As per guidelines, mutual funds can make investments in ADRs/GDRs issued by Indian companies; equity of overseas companies listed on recognised stock exchanges overseas, foreign debt securities in the countries with fully convertible currencies, short-term and long-term instruments with highest rating.

Investment will also be allowed in government securities of countries rated AAA and in units/securities issued by overseas MF or unit trusts, which invest in aforesaid securities or are rated and registered with overseas regulators.

The investment should be within the $2-billion limit and individual mutual funds cannot invest more than 10 per cent of the net assets managed by them as on March 31 of each relevant year.
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Warburg picks up 9 pc stake in Amtek Auto for Rs292-cr
Mumbai: Warburg Pincus has acquired over 9 per cent stake in auto parts maker Amtek Auto from the open markets. According to the ruling market price of the stock, the acquisition should cost Warburg nearly Rs292 crore, putting the valuation of the company at around Rs3,400 crore. This is nearly four times the company's annual sales.

The Amtek stock today rose 6.82 per cent to close at Rs286 in a firm Mumbai market, against yesterday's close of Rs267.75.

The acquisition by Warburg follows private investment banking group Stonebridge Investment picking up a 4 per cent stake in the company for Rs144 crore at the end of June.

Indian promoters hold over 36 per cent stake in the company, while banks and institutions hold 55 per cent. Public shareholding accounts for only 2 per cent. The total foreign holding stood at 43 per cent.
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