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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (10151)	12/20/1999 10:24:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

"We are very bullish on India"- Alliance Capital The head of Asian Emerging Market of one of the world's leading advisors, Alliance Capital Management L.P., on the investment rationale of the proposed sector funds in India An affiliate of one of US' top 10 money managers- Alliance Capital Management L.P., Alliance Capital Mutual Fund (ACMF) is also among the top money managers in India. The fund is on an expansion-spree having launched a monthly income scheme (Jun.'99) and government securities fund (Oct.'99) recently. The fund is once again entering the market with the launch of its three sector funds on 15 Dec.'99. To know more about the new funds, Capital Market spoke to Alliance Capital's Head - Asian Emerging Markets Samir Arora, who also heads investments at ACMF. Why sector funds? The Alliance Sector Series is a family of three multi-sector open-ended equity schemes - Alliance Basic Industries Fund, Alliance Buy India Fund and Alliance New Millennium Fund. We are very very bullish on India and we have second largest weightage of 31% on India, next only to 38% weightage on Korea. We have a very strong rationale for each of the three schemes. Alliance Basic Industries Fund will focus on investing in basic industries like automobiles, banking, steel, cement, paper, which are economically sensitive and have more to do with cyclicality. With economic recovery underway, these sectors will the biggest beneficiaries. Some of the companies in these sectors have undertaken a major restructuring exercise and have become more efficient and focused in the past few years. Alliance Buy India Fund will focus in the consumer and healthcare sectors. These sectors are driven by India's large population and it is really a play on India's masses. Alliance New Millennium Fund will invest primarily in software and telecom sectors and, over time, the fund will invest in e-Commerce and Internet companies. Software exports have been growing at 60 to 70% annually and we have a diverse and exciting universe to invest in. As we approach Y2K, do you expect a subdued trend to prevail in software scrips? Y2K! It is over. Y2K is history now. In which of the three sector funds will media stocks like Zee Telefilms find place? Zee Telefilms will be eligible for both consumer (Alliance Buy India) and Millennium Fund. Did Alliance Capital Mutual Fund get a firm allotments in any of the recent IPOs? We have got the third largest firm allotment in HCL Technologies. We have also got firm allotment in Hughes Software. In TV 18, we have got a firm allotment of 2 lac shares. There is a consensus that there will be renewed buying in the market in Jan. 2,000. Do you agree? After the new government was formed in Oct.'99, the market tumbled by about 600 points. Everybody has hyped so much about Jan. 2,000 that it may happen that market may dip. It may happen in Feb. 2,000. Who knows? We are at the upper end with about 73% of funds in Alliance '95 having invested in equity. The scheme can invest upto 75% of its investible funds in equity. -- Sameer Purohit CMOTS