Indiabulls Blue Fund will invest in blue-chip, large-caps; but very little is known about past performance of the fund managers

Moneylife Digital Team

Indiabulls Mutual Fund has filed an offer document with the Securities and Exchange Board of India (SEBI) to launch Indiabulls Blue Fund, an open-ended equity scheme. The new fund offer price will be Rs10 per unit. The fund will invest predominantly in blue-chip, large-cap companies. Indiabull has defined large-cap as the top 125 companies by market capitalisation in the BSE 500 index.

Indiabulls is launching a fund with fund managers whose past performance could hardly be tracked. The scheme will be managed by Aviral Gupta and Amarjeet Singh. Mr Gupta managed proprietary investments for HB Stockholding Ltd. He has been associated with FIIs like Venus Capital Management, Boston, and Dundee MF and Escorts MF. There is very little information about Amarjeet Singh. The only piece of information we get from the offer document is that he had worked in the Department of Central Excise and Customs, of the Ministry of Finance, for more than two decades.

The S&P CNX Nifty will be the benchmark index for the scheme. The exit load will be 1% if redeemed / switched out within the first year and 0.5% if redeemed/switched out in the second year. The minimum application amount is Rs5,000.

The scheme will invest 65% to 100% of assets in equity and equity-related securities, of which up to 35% of assets would be allocated in equity and equity-related securities of companies with a high-risk profile. Up to 35% of assets would be invested in debt and money market securities/instruments with low- to medium-risk profile.