Mirae launches India-China Consumption Fund

Mirae Asset Global Investments (India) 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 and companies benefiting from the consumption-led demand that is driving the world's fastest-growing economies, India and China, a press release issued here stated.

The new fund will open on March 9 and close on March 23.

It will pursue a flavour 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, the release said.

Mirae Asset Global Investments (India)'s CEO, Arindam Ghosh, said, "Domestic consumption is the primary driver of the strong growth seen in India and China in 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 urbanisation."

In terms of asset allocation, the fund will seek to invest 65-90 per cent 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 release said.

The fund may take up to 25 per cent 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 customised benchmark index that constitutes MSCI India Consumption Index (65%) and MSCI China Consumption Index (35%). The scheme does not guarantee or secure any returns, the release said.

Mirae Asset Global Investments (India) is a wholly-owned subsidiary of Mirae Asset Global Investments Group.

In less than a decade, Mirae Asset Global Investments has become one of the world's largest investors in emerging market equities, managing total assets of over $54 billion as of February.

Source: http://www.business-standard.com/india/news/mirae-launches-india-china-consumption-fund/128224/on