According to news reports, Birla Sun Life Mutual Fund, India's largest (mutual fund) in the private sector, launched Birla Balanced Fund. The balanced scheme will enable the MF to widen its product range.

With its latest scheme, and a soon-to-be-launched gilt fund, along with the two schemes acquired from Apple MF, Birla Sun Life assets under management is expected to touch Rs 30 bn (US$ 698 m) from its current level of Rs 23 bn.

Birla Sun Life MF manages approximately Rs 5 bn in equity schemes and the balance Rs 17 bn, in debt schemes. The balanced scheme proposes to invest 60% of its net assets in equity/equity related instruments. The scheme represents an opportunity for investors to correct the imbalance in the portfolio, which is tilted towards debt.

The move to launch balanced schemes (with a bias towards equities) and equity schemes is reflective of the mood prevailing in the MF sector. Equity has become the flavour for fund managers, who find it more attractive than fixed income securities. This trend is more discerning in the private sector, where assets under management have risen by more than 10% from Rs 94.8 bn in June 1999 to Rs 104.8 bn in July 1999. A large proportion of this growth is accounted for by equity offerings.

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