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Invest In Latin America


ING’s latest offering is the ING Latin America Equity Fund. The fund, which is currently in its offer stage, will basically invest almost 100 per cent of its corpus in ING’s own sub-fund managed in Luxemburg called ING (I) Invest Latin America Fund.

In the past five years, ING (I) Invest Latin America Fund has delivered an average of 49 per cent returns, although there have been occasions when it hasn’t been able to beat its benchmark (MSCI EM Latin America 10/40 ND Index). The fund invests in the companies of Latin America with majority of investment in Brazil (59 per cent) and the rest spread across the countries like Mexico, Peru, Chile, Columbia, etc.

With its investment in the Latin American countries, the fund has tried to focus on growing economies which are commodity hubs and have a strong export base. These countries also have the advantage of rising commodity demand, along with a high foreign exchange reserve because of which in the downturn world over, they have been able to move upwards.

However, the problem which the Latin American countries have is their political condition. Moreover, investing in foreign mutual fund also carries currency risk. The fund manager in the current market condition has tried to bring a new approach where a better diversification strategy is highlighted. But it remains for us to see how it works out in the time to come.


Scheme Details

NFO Opens: June 19, 2008 NFO Closes: July 10, 2008 Fund Category: Equity Specialty Type: Open Ended

Benchmark: MSCI EM Latin America 10/40 ND Index Minimum Investment: Rs 5000 Investment Options: Dividend, Growth, and Bonus Option Entry Load: 2.5% for investment below Rs 5 crore, Nil for investment more than Rs5 Crore. Exit load: NIL