Goldman gets approval for India equity fund

Reuters
Posted: Tuesday, Sep 09, 2008 at 0916 hrs IST
Updated: Tuesday, Sep 09, 2008 at 0916 hrs IST

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Mumbai, September 9: : The Indian fund unit of Goldman Sachs, which received regulatory approval to launch mutual funds last week, filed initial papers with the Securities and Exchange Board of India on Monday to offer its first equity fund.

Goldman Sachs India Equity Fund will invest at least 65 per cent of its assets in stocks and the rest in debt and money market instruments, the firm said in its offer document.

This is unlike the strategy followed by an Indian fund venture of French insurer AXA and the fund unit of Edelweiss Capital, who have started off in the last two months offering debt funds as flows into stock funds slumped.

Investors, who have seen their portfolio values shrink nearly 40 per cent in the first six months of 2008, poured only 27.62 billion rupees in equity funds in July, the lowest in two years, data from the Association of Mutual Funds in India showed.

Most of the inflows are coming into debt products with fixed maturity plans, which are close-end fixed income funds, cornering 68 per cent of the total 989.57-billion-rupee inflow into new funds in the first seven months of 2008.

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