There are a couple of new fund offers this week. ASK Private Wealth, the wealth management and advisory services arm of Blackstone-backed ASK Asset & Wealth Management Group, has floated the ASK Wealth Advisors (ASKWA) India Opportunities Fund. The ASKWA India Opportunities Fund offers a strategic avenue for NRIs and OCIs to access the dynamic and evolving Indian market.
Established in GIFT-IFSC (Gujarat International Finance Tec-City - International Financial Services Centre) and registered as an open-ended Category III Alternative Investment Fund (AIF), this new fund is targeted at Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) (excluding residents of the United States and Canada), offering them a unique opportunity to gain exposure to the rapidly growing Indian capital markets.
Key highlights
1. The Fund of Fund is designed specifically for India-focused investments.
2. The primary objective of this fund is to generate sustainable wealth by concentrating on high-quality companies with scalable business models, exceptional management teams, and lasting competitive edges.
3. This investment vehicle is particularly suitable for Non-Resident Indians (NRIs) who wish to partake in India's growth narrative without navigating the intricacies of direct investments in the Indian markets.
4. It is overseen by a diverse team of fund managers who have demonstrated track records, possess complementary investment styles, and prioritize risk-adjusted returns.
Rajesh Saluja, CEO & MD, ASK Private Wealth, said: "The Indian capital markets have been among the more resilient ones among major markets, even in the face of global tailwinds, on the back of the fast-growing economy. The ASKWA India Opportunities Fund provides an opportunity for NRIs and OCIs to participate in the India growth story through a welldiversified, expertly managed platform that aligns with their investment goals and helps them diversify their portfolio."
Somnath Mukherjee, CIO & Senior Managing Partner, ASK Private Wealth, said: "Till now, portfolio investments would typically get aggregated in international financial centres like Singapore, Hong Kong and Mauritius. With GIFT City offering a compelling and world-class proposition, ASKWA is proud to bring a multi-manager equity vehicle for offshore investors looking to invest in India. The structure enables investors to access multiple investing styles through multiple managers - all threaded together by ASKWA's unique ability to curate, evaluate, and structure innovative solutions for investors."
Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund
Bajaj Allianz Life Insurance's Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund is aimed at its Linked Insurance Plan (ULIP) customers. The new fund aims to capitalise on high-alpha stocks while offering the dual benefits of market-linked returns and life insurance coverage.
Fund objective: The fund seeks to replicate the performance of the Nifty 200 Alpha 30 Index, focusing on stocks with high Jensen Alpha values.
Investment strategy: It will invest in the top 30 stocks from the Nifty 200 Index that demonstrate the highest alpha, indicating potential for above-market returns.
NFO period: The New Fund Offer (NFO) is open until September 15.
Risk profile: The fund is suitable for investors with a higher risk appetite and long-term investment horizon due to potential market volatility, according to the company.
Index rebalancing: The underlying index will be reconstituted quarterly in March, June, September, and December.
“As life goals enablers for India, it’s our commitment to provide customers with reliable tools to achieve their long-term financial goals. With our resilient economy and the strong historical performance of the Indian equity market, the Bajaj Allianz Life Nifty 200 Alpha 30 Index Fund offers an opportunity for our customers to achieve their financial objectives,” said Tarun Chugh, MD & CEO at Bajaj Allianz Life Insurance.
Motilal Oswal Nifty 500 Momentum 50 Index Fund
Motilal Oswal Mutual Fund (MOMF) has launched the Motilal Oswal Nifty 500 Momentum 50 Index Fund, which is going to track the Nifty 500 Momentum 50 Total Return Index. This fund is aimed at investors seeking high momentum stocks across large, mid, and small-cap segments.
The Nifty 500 Momentum 50 Total Return Index has 50 stocks selected based on their strong recent performance, encompassing the full spectrum of market capitalizations within the Nifty 500 index.
Key points
> The NFO opened on September 2, 2024, and will close on September 16, 2024.
> Minimum investment is Rs 500 initially, with subsequent investments starting at Rs 1
> Plans available: Regular and Direct Plans, both offering only growth option
> Load structure: No entry or exit load
> The Nifty 500 Momentum 50 Index has shown decent returns, with a 75.2% increase over the past year and 35.9% over the past five years (as of July 31, 2024).
> However, the fund may experience higher volatility due to its momentum-based strategy.
> The Nifty 500 Momentum 50 Index is a market index that employs a momentum investment approach by emphasizing stocks demonstrating robust recent performance. This particular strategy typically proves effective in bullish market conditions and periods of economic recovery; however, it may exhibit heightened volatility in bearish market environments.
> The index's historical performance has been strong, consistently outperforming the broader Nifty 50 TRI in 12 of the last 19 calendar years. This track record demonstrates its ability to deliver competitive returns over time.
> Furthermore, it offers a wide exposure by including stocks from large, mid, and small-cap segments. This diverse range of included stocks allows for a holistic representation of the market and potential opportunities for growth across different market capitalizations.
> In terms of its approach, the index follows a systematic and rules-based methodology that is transparent to investors. By eliminating emotional biases in investment decisions, this approach aims to reduce the potential risks associated with impulsive or irrational choices, ultimately promoting a disciplined and strategic investment strategy.