Alliance Capital Mutual Fund, whose assets are up for sale in India, has faced a steep erosion in its corpus. The fund has lost Rs 427 crore assets under management during December, which would make it the steepest fall seen in the mutual fund sector during the month.
The shrinking of the asset base is despite the gains made by equities during the month. The Bombay Stock Exchange sensex moved up from 3270.36 on December 2002 to close the month at 3377.28 on December 31. Unlike other funds where equities make up one-tenth of the total assets, in Alliance nearly one-fourth of the assets are in equities.
Alliance officials could not be contacted for their comments. The fund has lost steadily in the last three months going down from Rs 3,836 crore as of October-end, Rs 3,798 crore as of November-end to Rs 3,371 crore at the end of December 2002. The erosion could not have come at a worse time for the fund, especially when it is looking at getting a good price for its assets.
Once the shortlisting of the fund
