The Hindu : Business : ING Vysya's CUB Fund

Online edition of India's National Newspaper
Tuesday, Jul 25, 2006

Business

Business

ING Vysya's CUB Fund

Opens for subscription on Tuesday

RAISES ITS SIGHTS: Chris Ryan, CEO, ING Investment Management Asia Pacific, with Kavita Hurry, Managing Director and CEO, ING Vysya Mutual Fund, at a press conference in Mumbai on Monday. — Photo: Paul Noronha

MUMBAI: ING Vysya Mutual Fund announced on Monday the launch of a new close-ended CUB Fund, which will invest in 50 competitive upcoming businesses (CUB) belonging to the sunrise sectors of the Indian economy.

The fund will be converted into an open-ended scheme after three years, but the units can be redeemed once in every quarter at the applicable Net Asset Value (NAV) without any exit load.

CUB Fund would largely invest in mid-cap and small cap companies with unique business model/product, market potential and business model scalability, said ING Vysya's Chief Investment Officer Paras Adenwala.

Fund's focus

The new fund will focus on emerging businesses like rural retail and finance, food processing, logistics, alternative energy, knowledge process outsourcing (KPO), R&D, wine making, medical tourism and clinical trials, Mr. Paras said.

ING Vysya's new fund would like to invest in companies like Gati, Vimta Laboratories, Subex System, Lakshmi Machine Works, Hindustan Zinc, Hindustan Constructions, Titan Industries, Gitanjali Gems which are poised to grow fast, he added.

However, the new fund would not ignore large companies that fit into this model and would invest in businesses with growth trajectory of over 25 per cent, he said.

The fund opens for application on Tuesday and will close on August 21.

ING Investment Management's Asia Pacific CEO Chris Ryan, who was present during the launch of the CUB Fund, told PTI that India's businesses have grown much faster than China's in the last 12 months.

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