Mutual Funds are introducing new schemes in the commodity and Shari?ah-linked sectors, which are considered emerging asset classes.
After Mirae Mutual Fund, ING MF has also offered a commodity fund. The fund would provide an attractive return, as it is expected to invest in stocks of those companies who are active in the agri industry, and since the food prices are expected to remain firm in the coming days due to the increasing mismatch between demand and supply, the investment is expected to fetch a good return.
Arvind Bansal, CIO, ING Investment Management said, “We aim to provide a diversification of asset classes, apart from equity and debt funds, to domestic investors.
He said that the price movement in commodities is cyclical, which lasts for around 12 years. The price rise in commodities started in the year 2000, which is expected to continue for another three to four years.
Fund houses are in pursuit of new sectors, which can help its investors outperform the overall market and are structuring new schemes based on new themes. MFs have also lined up plans linked to Shari’ah. Both, Benchmark MF and Taurus MF have filed applications with Sebi to offer Shari’ah and ethical-linked schemes.
Waqar Naqvi, CEO, Taurus MF said that globally Shari’ah and ethical-based funds are gaining importance. These thematic funds provide an opportunity to all religious followers who do not want to gain benefit from tobacco- and alcohol-based companies.