Friday, March 24, 2006

Deutsche Mutual Fund looking for companies focused on rural India

According to this news:
Deutsche Mutual Fund plans to turn its attention to companies focused on rural India, courtesy an equity fund titled Deutsche Green India Fund. The proposed scheme will try to generate long-term capital appreciation by investing chiefly in stocks of companies with businesses that revolve around the rural theme. These would also be companies that are expected to benefit from growth in agriculture and allied sectors. eutsche Green India Fund, to be benchmarked against the S&P CNX 500, will invest in companies engaged in agri commodities, irrigation, food processing, fertilisers, agri machinery, and the like.

Besides, rural infrastructure development companies (covering rural electrification, roads and canals) may also be included in the portfolio, along with tractor and two-wheeler makers. The fund's investment universe will include FMCG companies that derive a large part of their revenues from the rural market, while banks and finance outfits too will be taken into account. The offer document filed by Deutsche MF with the SEBI has named Vinay Kulkarni as the fund manager. A minimum 65 per cent of the assets will be invested in equities and equity-related securities of companies that focus on rural India. The allocation may be raised to 100 per cent as well.

Reliance Agri Fund, which Reliance MF had mooted last month, has been a first of sorts on this front although Sundaram MF has actually entered the market with its Rural India Fund. If launched, Reliance Agri will follow Reliance Equity, whose NFO recently wrapped up with Rs 5,700 crore. The fund's investments may span 0-100 per cent in equity as well as 0-100 per cent in debt. The idea, as outlined in the offer document, is to invest in equity or fixed income securities of companies in the agri sector and those in allied segments.

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