Mirae Asset Global Investments (India) has announced the launch of the country’s first Pure China Fund, Mirae Asset China Advantage Fund (MACAF), which is an open ended fund of funds (FoFs).
Mirae MF is the second fund house to target China for growth. Earlier, JP Morgan Asset Management Company, in July had launched the Greater China Equity Offshore Fund. It went on to collect Rs 53 crore.
Overall, the amount collected by overseas-bound funds tots up to Rs 400 crore.
The scheme will predominantly invest in Mirae Asset China Sector Leader Equity Fund, and/or overseas funds and exchange traded schemes.
According to the fund house, China is poised to lead the world out of the global slowdown backed by its domestic consumption and stimulus push from the government.
The launch of the fund aims to meet the investor’s asset allocation needs too. Through this fund, access would be provided to investors to one of the world’s growing economies and will enable them to prudently diversify their portfolio. The fund would be benchmarked against MSCI China Index (INR terms).
65-100 per cent of the corpus may get invested in equities and equity-related securities of companies domiciled in or having their area of primary activity in China and Hong Kong. The scheme may invest up to 35 per cent of its assets in fixed income instruments, domestic debt funds, cash and cash equivalents.
The new fund offers only a regular plan with dividend (payout & reinvestment) and growth options. The minimum application amount for the regular option being Rs 5,000 and in multiples of Re 1 thereafter. The fund managers are Gopal Agrawal, head of equity and Neelesh Surana, senior fund manager, equity, but their role will be limited to allocating the scheme’s assets between the underlying scheme and fixed income.
The fund will be open for initial subscription from September 14, 2009 to October 9, 2009.
The New Fund Offer (NFO) has been at Rs 10 per unit.