Alliance Capital Mutual Fund has come out with a yet another open-end equity fund called Frontline Equity Fund. The AMC already has an aggressive equity fund - Alliance Equity, which is the largest open-end private sector equity fund (Rs 483.66 crore) in India.
The Frontline Equity Fund will track the sectoral weights of BSE 200 index every month. The designated day for such adjustment will be the 23rd of every month. However, the fund will have the flexibility of selecting stocks within a particular sector from a wider investment universe.
The fund will open for subscription from August 12 to August 30, 2002. However, the earliest closing date is August 23, 2002. It offers two options - Growth and Annual Dividend Plans. During the initial offering period, entry into and exit from the fund is on a no-load basis. But, once the scheme opens for ongoing sales and redemption, it will charge an entry load of 2%. The minimum investment amount is Rs 5000 and in multiples of Rs 1000 thereon.