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London, United Kingdom, 2010/03/19 - Kotak Mahindra (UK) Ltd, (a wholly owned subsidiary of India’s Kotak Mahindra Bank Ltd.) announced the launch of its India Growth Fund (IGF). IGF will be the third sub fund of Kotak Funds a, UCITS III compliant SICAV domiciled in Luxembourg.
The IGF aims to generate long-term capital appreciation through investing in large and mid-cap Indian companies with high growth potential, and which correspond with key investment themes: Infrastructure, Financial Services, Outsourcing, and Consumption-led demographics.
It will adopt a combined approach of top-down sector driven and bottom-up stock selection, with a bias towards large-cap companies and flexibility for the fund manager to invest also in mid and small caps.
Nitin Jain, Principal Fund Manager for Kotak’s long only strategies will manage the fund. Nitin also manages the Indian Multicap Fund and the India Infrastructure and Realty Fund; the other sub funds of the UCITS III compliant SICAV. He has close to 14 years experience in India’s equity markets.
Nitin Jain says: “A few years ago most investors might only have exposure to India through an emerging market or global fund but they now recognise that India is an asset class in its own right. They are now looking for a variety of ways to tap opportunities in the market. They prefer a liquid, transparent and regulated investment vehicle which is why UCITS III compliant SICAVs provide the perfect platform and this is why we are continuing to expand Kotak’s range of SICAV funds.
“The IGF allows investors to tap into frontline wealth creating companies, but not excluding the large-caps of the future: mid and even small caps positioned across key investment themes. India has a strong case for growth, due to:
• its young and increasingly urban population which is driving domestic consumption;
• government-supported investment in infrastructure which is targeted to reach 9% of GDP by 2014;
• continued reforms in financial services which will help increase currently low market penetration; and
• the continued pioneering position that India holds in IT outsourcing and now in Pharmaceuticals.
“As the Indian economy continues to grow ahead of most others, favoured also by political stability and strong local and global liquidity, these themes have significant potential for investors looking for long-term growth.”
Investments in India are subject to the normal risks associated with emerging markets, including but not limited to risk of losing some or all of the capital invested, high volatility, variable liquidity, geopolitical risks (including political instability), exchange rate fluctuations and restrictions on foreign investors. Investments in India should, therefore, be considered only as part of a well diversified portfolio.
The views mentioned above are that of the fund management team at Kotak group (kotak.com) and is not intended as a recommendation or for the purpose of soliciting any action in relation to any investments, or to be otherwise relied upon for any purpose.
In the preparation of the material contained in this document we have used information that is publicly available, including information developed in-house. Information gathered & material used in this document is believed to be from reliable sources. We do not warrant the accuracy, reasonableness and/or completeness of any information.