Dubai, Aug 13 India's ING Vysya Mutual Fund is actively wooing non-resident Indians (NRIs) in the Gulf to its newly launched close-ended offering ING Vysya CUB (Competitive Upcoming Businesses).

The company is targeting at least Rs.150 million from Dubai alone, said Vikaas M. Sachdeva, India head (Business Development) of the fund.

The new fund would largely invest in mid-cap and small cap companies with a unique business model or product, market potential and business model scalability.

The sectors on target are rural retail and finance, food processing, logistics, alternative energy, knowledge process outsourcing (KPO), R&D, wine making, medical tourism and clinical trials.

The fund will be converted into an open-ended scheme after three years, but the units can be redeemed once in every quarter at the applicable Net Asset Value (NAV) without any exit load, a senior ING Vysya official had said the fund's launch recently.

"We are looking at 15 percent return on investment and 25 percent return on equity. Our emphasis is on absolute returns rather than benchmark returns, by following the stock-specific and sector-specific ceiling," Sachdeva said.