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Safety in diversity

Morgan Stanley, amongst the largest fund houses in the world, has been a spectator in India for quite some time now. Now it’s gearing up for the big game and the structure is in place.

Print Edition: February 21, 2008

Morgan Stanley A C E Fund

FUND FACTS

Offer open: Till 10 March

Scheme type: Open-ended diversified equity

Minimum investment: Rs 5,000; unit price: Rs 10

Loads: Entry load: 2.25%

Exit load: 1%(if less than six months), 0.5% (if six months to one year)

Options: Growth and dividend (reinvestment and payout)

Investor grievances: Hemang Sheth. Tel: (022) 22097045.

FUND STATS

Objective: To generate long-term capital growth from an actively managed portfolio of equity and equity-related securities including equity derivatives.

Benchmark: BSE 200

Fund manager: Jayesh Gandhi

Asset allocation:
65-100% Equity & equity-linked
0-35% Debt
up to 50% of NAV Derivative investment
up to 30% of NAV Foreign securities

Comparable existing scheme:

Fund NameICICI Prudential Indo Asia EquityABN Amro China India Equity
NAV* (Rs)9.428.79
1-month return(%)-12.45-17.80
Since inception(%)-5.80-12.14
*NAV as on 30 January.Source: NAVIndia

                         

FUND PROGNOSIS

Idea distiller: The fund wants to make the most of investment opportunities across sectors, caps and securities without any bias. It has a better chance of creating a winning portfolio than a focused one at this stage.

Fund house report: Morgan Stanley has been in India since 1993 and offers only one fund scheme, managing funds worth Rs 4,380 crore.

Track record:
Returns profile: 3/5
Risk profile 3/5

Fund manager report: Performance of fund manager
Returns profile: 3/5
Risk profile: 3/5

Scheme DNA:
Unique idea: Medium

Four fundamentals of the fund scheme:
Return possibility: Medium
Risk: Medium
Operability/Complexity: High

INVESTOR TAKEAWAYS

Who should apply:

The fund house is launching a new fund after a long time. This fund is for longterm investors who want to diversify their portfolio across sectors and market caps. Since the fund has the mandate to take global exposure, it may help lower risks of betting on one economy.

Remember:

The fund house, amongst the largest in the world, has been a spectator in India for quite some time now. With substantial effort and patience it has put its lone closed-ended scheme back on the rails again. Now it’s gearing up for the big game and the structure is in place.

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