Mirae Asset Global Investments launches Its India-China Consumption Fund


By Business Standard

Mirae Asset Global Investments (India) Pvt. Ltd., today announced the launch of Mirae Asset India-China Consumption Fund, an open ended equity oriented scheme.

The scheme, the first of its kind in India, will focus on sectors/ companies benefiting from consumption-led demand that is driving the world’s fastest growing economies, India and China. The new fund will open on 9th March, 2011 and close on 23rd March, 2011.

Mirae Asset India-China Consumption Fund will pursue a flavor of Indian and Chinese consumer stocks, providing Indian investors with the opportunity to benefit from the long term structural growth trends in consumption and consumption led sectors like Financials, Healthcare, Utilities, Telecom, Consumer Discretionary, Consumer Staples, Automobile, Retail etc. in these two nations.

Commenting on the launch, Mr. Arindam Ghosh, CEO, Mirae Asset Global Investments (India) Pvt. Ltd. said, "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.

In terms of asset allocation, the fund will seek to invest 65 - 90% of its assets in Indian equities and equity related securities of companies that are likely to benefit either directly or indirectly from consumption led demand. The fund will also invest 10 - 35% of its portfolio in Chinese equities and equity related securities of companies that are likely to benefit either directly or indirectly from consumption led demand. The fund may take up to 25% exposure in money market instruments (including CBLO)/debt securities instruments in India and/or units of debt/liquid schemes of domestic mutual funds.

The scheme will use a customized benchmark index that constitutes MSCI India Consumption Index (65%) and MSCI China Consumption Index (35%). The Scheme does not guarantee or assure any returns.

 

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