AIG Infrastructure & Economic Reform Fund

AIG's new offering is the AIG Infrastructure & Economic Reform Fund. It is basically another infrastructure fund, and what it does in a crowded category remains to be seen


The AIG Infrastructure & Economic Reforms fund is AIG Mutual Fund's second equity offering. This new fund will primarily invest in equity and equity-related securities of companies involved in the economic development of India. Such companies will be selected as a result of their potential investments in infrastructure and unfolding economic reforms.

Scheme Details
Issue Opens: January 10, 2008
Issue Closes: January 31, 2008
Fund Category: Open-End, Equity Scheme
Benchmark Index: BSE 100
Minimum Investment:
Regular: Rs. 5000
Institutional: Rs 5 crore
Load
Regular Plan
Entry Load: For investments less than Rs. 5 crore, an entry load of 2.25%
Exit Load: For investments less than Rs. 5 crores, an exit load of 1% if redeemed within 1 year from the date of allotment. For investments of Rs 5 crore and above, an exit load of 0.50% if redeemed within 6 months from the date of allotment.

Institutional Plan
There is no entry load but an exit load of 050%, if redeemed within 6 months.

About the Fund Manager
The fund will be managed by Mr. Tushar Pradhan. Mr. Pradhan is a commerce graduate and an MBA. He has experience of over 12 years in investments and research. Prior to joining AIG Asset Management Company, he was with HDFC AMC as an equity fund manager.

Presently, he manages the AIG Equity Fund. The fund is a new entrant and has been an average performer till date.

AIG Global Investment Group Mutual Fund
The company commenced operations in May 2007 with the launch of an equity fund. Currently, the fund house has more than Rs. 2,800 crore of assets under management with a majority of its allocations in cash.

Performance of Similar Funds
Ret (%)
Fund Name Launch Date 3 mths 6 mths 1 year 2 year
Birla Infrastructure 24/02/2006 -4.54 21.88 43.38 -
Canara Robeco Infrastructure 09/11/2005 -8.11 32.42 53.38 41.14
DBS Chola Infrastructure 06/09/2007 -0.92 - - -
DSPML T.I.G.E.R. Reg 25/05/2004 -3.77 31.43 49.95 47.68
Escorts Infrastructure 31/08/2007 -1.06 - - -
ICICI Prudential Infrastructure 16/08/2005 -0.68 37.67 57.63 55.25
ICICI Prudential Infra Inst I 27/03/2006 -0.49 38.25 - -
JM HI FI 20/03/2006 -5.41 28.56 32.80 -
Principal Infra & Services Ind 07/02/2006 -1.22 24.94 33.28 -
Sahara Infra Fixed Pricing 14/03/2006 -2.08 31.26 51.50 -
Sahara Infra Variable Pricing 14/03/2006 -1.88 31.78 52.66 -
SBI Infra Fund Series 1 11/06/2007 -7.03 29.22 - -
Sundaram BNP CAPEX Opp.-G 05/09/2005 -7.33 32.36 52.50 47.53
Tata Infrastructure 22/12/2004 -4.79 33.42 55.01 49.96
UTI Infrastructure 07/04/2004 -8.89 27.53 42.57 47.37
Data as on January 29, 2008

Opinion
Funds focused on infrastructure related companies have led the pack of top performing fund in the recent past. The story still holds promise. But there are many existing infrastructure funds to choose from. This fund, being a new one, should be avoided till it builds a decent track record.



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