News: ING Vysya's first asset allocation fund

(BL 29/09/2006) Mumbai - ING Vysya Mutual Fund has launched a new close-ended fund, ING Vysya Dynamic Asset Allocation Fund. The three-year close-ended fund has been given AAA (so) rating by Crisil.

The fund will invest in equity/equity-related securities and for defensive purposes, it may place funds in debt and money market instruments.

The new fund offer opens on September 27 and closes on October 19.

The scheme will have a pre-determined `floor' and `multiplier'. Also, the portfolio will be juggled every 15 days or every time the market turns volatile. The floor and multiplier will work on a formula seeking to protect capital at any given point and offer reasonable returns.

Thus, the scheme will lift its exposure in equities, every time the markets go up. "As the market is becoming more and more volatile, we should have a pre-determined rebalancing frequency in switching our portfolios from one segment to another for sustainable benefits to investors," said Ramanathan K. Head - Fixed Income, ING Vysya Mutual Fund.

The fund will invest up to 50 per cent in mid-caps and the rest in large caps. The fund is available in three options: Growth, Dividend and Bonus.

The fund will have a nil entry and exit load and the minimum investment will be Rs 5,000. It will be benchmarked against the Crisil Balanced Fund Index.