Mumbai: Mirae Asset Mutual Fund today announced the launch of its open ended equity Mirae Asset India-China Consumption Fund.
NFO Date: March 9, 2011 to March 23, 2011
The scheme will focus on sectors and companies benefiting from consumption-led demand that is driving the world’s fastest growing economies, India and China.
“Domestic consumption is the primary driver of the strong growth seen in India and China in the recent years. Going forward, the consumption theme will be the engine of sustainable growth made possible by higher per capita income, disposable surplus and growing urbanization. India and China are at the inflexion point of the Consumption J-curve with India’s strong propensity to consume basic goods & services and China’s strong demand for luxury goods,” said Mr. Arindam Ghosh, CEO, Mirae Asset Mutual Fund.
Risk Profile: Medium to High. Suited only for investors with a long-term horizon.
Distribution Strategy: The fund will be distributed through its empanelled IFAs, national distributors and banks.
Minimum Investment: Rs 5,000 and Rs 1000 for SIPs
Fund Managers:
Gopal Agrawal, Dy. CIO & Head - Equity & Neelesh Surana, Sr. Fund Manager (Equity).
Basavraj Shetty will be the dedicated fund manager for overseas investments.
Asset Allocation:
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65 % to 90 per cent in Indian equities
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10 % to 30 % in Chinese equities
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Up to 25% in money markets
Benchmark:
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MSCI India Consumption Index (65%)
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MSCI China Consumption Index (35%)
Exit Load:
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Regular Plan: 1% if redeemed within one year.
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SIP: 1% if redeemed within one year.
Existing China focused funds:
There are no strict comparables to Mirae’s Indo China Fund but there are a few schemes which invest in Chinese markets:
BNP Paribas China India Fund
While BNP Paribas China India Fund invests across all sectors in China, Mirae’s Indo China will invest solely in stocks linked to consumption related sectors like Auto, Healthcare, Education, Media, Banking, Transportation, Food and Tourism, Hospitality, etc.
JP Morgan Gr China Equity Offshore
This is a fund of fund scheme which invests in the diversified offshore fund JF Greater China Equity Fund.
ICICI Prudential Indo Asia Fund
This fund invests 65% of its corpus in Indian equity and up to 35 % in the diversified IOF Asian Equity Fund managed by Singapore based Prudential Asset Management. This fund has exposure to a mix of economies varying from the likes of Singapore, Hong Kong, Australia, to Thailand, Malaysia and China.
