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Mumbai, Maharashtra, India, 2010/06/01 - This fund, available on the UCITS III compliant SICAV platform, aims to access capital growth potential by investing primarily in the shares and equity-linked instruments of mid-cap companies in India.
Kotak Mahindra (UK) Ltd, (a wholly owned subsidiary of India’s Kotak Mahindra Bank Ltd) announces the launch of the India Mid-Cap Fund. The fund, available on the UCITS III compliant SICAV platform, is the fourth Luxembourg-domiciled Kotak fund to be launched, making Kotak one of the leading Indian providers of investment solutions for international investors.
The India Mid-Cap Fund aims to access capital growth potential by investing primarily in the shares and equity-linked instruments of mid-cap companies in India.
The fund adopts a predominantly bottom up approach to stock picking and has a well-diversified portfolio of companies that are also aligned with key investment themes. Currently the fund has a bias towards demographic-led consumption and infrastructure development.
Typically, investments are made in companies that have assets and leadership in a particular niche segment; potential for rapid growth and innovation; or the ability to create new markets. Improvements in the business cycle present particularly strong opportunities for mid-caps but the investment manager also has flexibility to invest up to 35% of the portfolio in the shares and equity-lined instruments of large capitalisation companies.
The minimum required retail investment amount is US$500 and US$1,000,000 for institutional investors. It targets to have a size of US$40mn over the next one month.
Nitin Jain, Principal Fund Manager for Kotak’s long only strategies manages the fund. He says: “As the global recovery has gathered pace, Large-Cap funds have seen big inflows as confidence returns to the market. The Mid-Cap arena however has been overlooked, particularly by foreign investors.”
“The Mid-Cap market has traditionally been under researched, meaning the sector has been left to local Indian investors with knowledge of the market. The Indian growth story and the strong long-term prospects of the economy mean that many of the companies in this space are Large-Caps in the making. The retail, media and pharmaceutical research sectors for example are all still in a fairly nascent state and investors can benefit from the value creation in these sectors as they evolve over a period of time”
Kotak has previously launched three other funds on the SICAV platform, the Indian Multicap Fund; the India Infrastructure Realty Fund, and most recently the India Growth Fund; providing a range of ways for investors to access opportunities across the Indian market.
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 India Midcap Fund, Indian Multicap fund, India Growth Fund, India Infrastructure Realty Fund are all open ended investment companies organized as Societe d’Investissement a Capital Variable (SICAVs) under the laws of the Grand Duchy of Luxembourg and are registered under Part I of the Luxembourg law of 20 December 2002 relating to undertakings for collective investment. The Funds operate under the requirements of the European Union’s Directive on Undertakings for Collective Investment in Transferable Securities (UCITS) and are regulated by Luxembourg’s Commission de Surveillance du Secteur Financier (CSSF). The address of the CSSF is 110, route d'Arlon L-2991 Luxembourg T: 352 26 25 1-1 F: 352 26 25 1-601)