Alliance Capital Mutual Fund (MF) plans to launch three India-dedicated, sector-specific funds next week. This was revealed by Samir Arora, chief investment officer of Alliance Capital MF.

The three funds - Alliance New Millennium Fund, Alliance Buy India Fund and Alliance Basic Industries have been floated with a definite investment rationale for each. Samir Arora revealed that Alliance New Millennium Fund would invest in technology-related stocks, Alliance Buy India Fund would invest in consumer goods and healthcare firms, while Alliance Basic Industries Fund would invest in basic industries like cement and steel.

Arora remarked, 'We are overweight on India in all our Asian funds. After a long time, we are bullish on the overall market and not just on specific sectors.'

With the launch of these schemes, total number of offerings from the Alliance Capital stable will add up to 10. Currently, Alliance Capital MF manages assets worth Rs 17.1 bn through its seven schemes.

This is the first attempt on the part of Alliance Capital MF to exploit the advantages in specific sectors like steel, cement, infotech (IT). Sectoral funds have their upsides and downsides. The upside being that so long as that sector/segment performs well, the fund will also do well. But if there is downturn in that sector, the fund manager will not have the liberty to fall back on some other sector/segment. In such a scenario, the fund manager will have to restrict himself to a much smaller range of companies, which continue to perform well despite the downturn in that sector.

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