AIG Infrastructure and Economic Reform Fund

AIG Mutual Fund has launched a mutual fund called "AIG Infrastructure and Economic Reform Fund" which is an open-ended equity scheme that seeks to generate long-term capital appreciation by investing in companies that may benefit from potential investments in infrastructure and unfolding economic reforms without having any bias towards any sector or market capitalization range.

Under normal market conditions and depending on the fund manager's views, the assets of the Scheme would be invested across stocks that represent a broad range of sectors of the economy as mentioned below in order to ensure adequate portfolio diversification:

Infrastructure: Infrastructure companies operating in but not limited to power, oil and gas, telecom, water, housing, real estate, construction, roads, ports, airports, shipping & shipping building, logistics, etc. and sectors that will benefit from the development in infrastructure such as but not limited to cement, metals, capital goods and banking and financial services.

Economic reform oriented: Companies in sectors that will benefit from the on-going liberalization in the Indian economy including relaxation in foreign exchange controls, FDI in banking and financial services and any other industry or sector where there is a trend to moving toward a freer market based model like retail, media and entertainment, mining, etc.

The fund proposes to invest at least 65 per cent of the fund proceeds into Indian equities but under normal circumstances they will invest between 80% - 100% in equities. It has an option to invest upto a maximum of 35% in Debt Securities and Money Market Instruments and Fixed Income Derivative and in normal circumstances, they will invest between 0% - 20% in debt securities.


Scheme Details

Issue Opens: January 10, 2008
Issue Closes: January 31, 2008
Ongoing Offer: February 29, 2008

Type: Open ended equity scheme
Plan : Dividend Option,Growth Option. Dividend Option (with Payout Facility and reinvestment).
Minimum Investment: Rs. 5,000
Entry Load: 2.25% if the investment amount is less than 5 crores. In case of investment through SIP, it will be 1.25%.

Exit Load: If redemption happens before 1 year and the investment amount is less than 5 crores, then there will be an exit load of 1%.

The AMC will disclose details of the portfolio of the Scheme every 6 months by either sending a complete statement to all the Unit Holders or by publishing such statement, by way of advertisement, in two daily newspapers. The same shall also be displayed on the website of the fund.