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Ashmore group has recently launched a Cat-III AIF fund based on equity long-only strategy, an open ended category III AIF. The company started raising commitment in April 2024.
The fund aims to generate long-term alpha through a concentrated portfolio of 25-35 stocks with an emphasis on liquidity and risk control.
The fund will invest in a variety of sectors including financials, consumer discretionary, IT, health care, industrials and materials. In a press release, the group cited the changing geopolitics, higher global inflation and changing trends in energy consumption as key paradigm shifts driving its investment choices and decisions. It also said that it wants to focus on mispriced stocks with strong fundamentals.
Rashi Talwar Bhatia, CEO Ashmore India said, “We continue to believe that India will deliver GDP growth in the 7% range. The incremental spend for that will come from the private sector. The consumption revival which had been led by more urban consumers will become broader based now. With a good monsoon and targeted Government spends, we should see the uptick in rural demand going forward.”
She further said, “We continue to see enough attractive opportunities in the market – large private sector banks, infrastructure companies benefitting from private sector capex, life insurance and mid cap tech – to name a few. We also believe that a recovery in rural consumption should aid rural housing and FMCG stocks.”
So far, Ashmore group has raised commitment of Rs.90 crore in this strategy and generated returns of 4.60% since inception. It levies 1% exit load on redemptions before 12 months.