ING Vysya MF upbeat on its new schemes

ING Vysya Mutual Fund is betting on AA/AA+ rated securities for the success of its new open-ended debt scheme 'ING Vysya Select Debt Fund'.

Sushil K Sharma, chief marketing officer of ING Vysya Mutual, said here that AA/AA+ rated papers offer higher yields than AAA papers. Besides, credit upgrades of the invested securities provide scope for capital gains.

The scheme will have higher exposure to AA rated securities and also invest in money market instruments. The securities will have varying maturity dates so as to help maximise income while maintaining the balance of yield, safety and liquidity, he said.

ING Vysya MF also announced the initial public offer of an open-ended equity scheme 'ING Vysya Domestic Opportunities Fund'. The investment will have exposure only to those companies which derive a major portion of their revenues from the domestic market.

The IPO for both the schemes was launched on July 30 and closes on August 23. The fund hopes to raise Rs 200 crore from the schemes. At present, it has nine schemes and manages assets worth Rs 1,700 crore as compared to Rs 400 crore a year ago.

"With so much optimism on India emerging the centre-stage of global economy, the fund has decided to invest in India as a sector," Sharma said.