Kotak Mahindra to raise $200 mn from overseas fund
The investment objective of the scheme is to provide long-term capital appreciation by investing in stocks of global emerging market.business Updated: Aug 03, 2007 18:42 IST
Kotak Mahindra Mutual Fund on Friday said that it expects to raise $200 million (Rs 800 crore) from a three-year close ended 'Global Emerging Market Fund'.
The investment objective of the scheme is to provide long-term capital appreciation by investing in stocks of global emerging market mainly in Asia, Kotak Mahindra Asset Management Chief Strategist Alroy Lobo told reporters in the Capital.
The money collected would be put in Luxembourg domiciled T Rowe Price Global Emerging Markets Equity Fund - SICAV (TGEMF), which is currently managing assets over $11 billion, he said.
In the past three year, the existing fund has given a return of about 40 per cent, he said adding investment in the fund is good risk diversifying tool.
It is suitable for long-term investors with a higher risk appetite and who wish to supplement existing holdings with exposure to investment opportunities in globally emerging economies, he said.
The scheme would invest in equity and equity related securities of companies in the emerging countries of Latin America, Asia, Europe, Africa and the Middle East.
The fund benchmarked against MSCI Emerging Market Index has minimum investment size of Rs 5000.
As per the existing guideline, the mutual fund industry cannot invest more than $4 billion overseas and for individual fund house the cap is $200 million.
The returns from the fund is however subject to tax provision similar to debt funds. The New Fund Offer, which closes on August 24 has no entry and exit load.