News: OptiMix launches dynamic fund-of-funds

(RTR 30/08/2006) Mumbai - ING Vysya Mutual Fund's OptiMix division has launched its fourth fund-of-funds, Optimix Dynamic Multi Manager FoF Scheme, a senior official said on Wednesday.

"The fund would allocate money dynamically between equity, debt and liquid funds," Mugunthan Siva, chief investment officer of OptiMix, told Reuters.

OptiMix manages assets of portfolios containing a suite of individual funds - popularly known as fund-of-funds.

The fund will not make any investments in inhouse schemes, the offer document said.

A three-year close-end fund, Optimix Dynamic Multi Manager FoF Scheme, will be available for initial subscription between August 30 and September 28.

The fund will provide repurchase facility on first and 16th of every month.

OptiMix currently manages three fund-of-funds. It has also filed papers with the regulator Securities and Exchange Board of India to launch OptiMix Active Debt Multi Manager, which will invest only in debt funds.

Fund-of-funds are yet to get popular with Indian investors, with only eight of 30 fund houses in India offering it.

As on July 31, the 25 fund-of-funds managed just 15.92 billion rupees. India's mutual fund industry manages 2.87 trillion rupees worth of assets.