Lack of curbs on sector or asset allocation may lead to the fund manager going overboard with asset class exposures
The Prudential ICICI Mutual Fund has recently launched an open-ended equity fund called the Dynamic Plan. The scheme, whose initial offer closes on October 18, 2002, will primarily invest in equities to generate long-term returns.
The speciality of the fund is that it allows the fund manager to take aggressive calls and invest the entire corpus in equities at a given point of time. And, in adverse market conditions he can cut all his exposure to equities and put all the money in debt or government securities or sit on cash.
So, the fund's exposure to equities, debt or cash can range from 0 per cent to 100 per cent at different points of time. Says Dileep Madgavkar, chief investment officer,
