Entry and Exit Load changes for AIG Mutual Fund Schemes
May 16th, 2008
AIG Investment has announced a revision in the Entry and Exit Load of its mutual fund schemes. There will be an entry load of 2.25 and 1 percent exit load if redeemed within 1 year from the date of allotment for its schemes AIG India Equity Fund, AIG Infrastructure and Economic Reform Fund and AIG World Gold Fund for SIP and STP investments.
Entry Filed under: AIG Mutual Fund, Infrastructure Mutual Fund Schemes
2 Comments Add your own
1. Abhijit | September 20th, 2008 at 5:55 pm
To whome soever it may concern
I have taken AIG Infrastructure and Economic Reform Fund, in the month of January’2008, of an amount of 10,000/- what its possibility in the market as the value is not increasing, for how much time should i wait so that i can get a good return when i redeemed.
2. admin | September 22nd, 2008 at 8:05 am
AIG Mutual Fund as a mutual fund house in India is relatively new and is yet to showcase its skills. The fund house has launched pretty many schemes so far and has built its product portfolio offering good.
The AIG Infrastructure and Economic Reforms is an open ended equity scheme with an investment objective to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity-related securities that are involved in economic development as a result of potential investments in infrastructure and unfolding economic reforms.
A look at its holding pattern (as of August 29, 2008) shows the fund is holding a corpus of Rs. 307.68 crores and is holding 94.07% in equity. This shows the fund is pretty much holding equity stocks (as against to holding cash idle). The top 5 holdings are Industrial Capital Goods, Banks, Construction, Power and Pharmaceuticals. The scheme is giving a negative return over its benchmark at the moment. The scheme is more into high stable growth stocks and high cyclical growth stocks. Considering that the markets have corrected a bit sharply soon after your investment, it will not be a wise idea to exit from the scheme and book a loss on investment.
It will be wise to hold the stock for some more time, review it again in next January (by which your investment completes a year) and then take a call on it. In general, it is always good to hold an investment for at least 3 years before taking a call on it since equity mutual funds work out well in the long term. Further, you would have put your investment as 10 SIP installments of Rs. 1000/- each instead of a lumpsum investment of Rs. 10,000. SIP is a wiser method of taking advantage of rupee cost averaging and works out even more better in volatile and uncertainity times like we are having at the moment.
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