New Fund Offer: NIMF announces launch of India’s first Taiwanese Equity Fund; check details

By: |
November 17, 2021 4:24 PM

Nippon India Mutual Fund (NIMF) today announced the launch of Nippon India Taiwan Equity Fund on November 22, 2021. This will be India's first open-ended equity scheme following a Taiwan-focused theme

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Nippon India Mutual Fund (NIMF) today announced the launch of Nippon India Taiwan Equity Fund on November 22, 2021. This will be India’s first open-ended equity scheme following a Taiwan-focused theme, NIMF said in a statement.

Nippon India Taiwan Equity Fund will be advised by Cathay SITE, which is the largest Asset Manager in Taiwan with $42.8 Bn in AUM. It is also the largest segregated account manager in the Taiwan Equity market for Taiwan public pensions.

NIMF and Cathay has also signed a Letter of Intent (LOI) for an exclusive strategic collaboration for jointly/severally developing, managing, advising, marketing, and distributing each other’s investment products in India and Taiwan. This NFO is a step towards the same.

According to the statement, the primary investment objective of Nippon India Taiwan Equity Fund is to provide long-term capital appreciation to investors by primarily investing in equity securities listed on the Taiwan Stock Exchange. It will follow a Multi Cap investment strategy with a portfolio comprising of growth and value stocks. The fund focus will be on new technology trends and will hold less than 10% investment in a single stock.

Key Dates and Minimum Investment Required

The NFO will open for subscription on November 22, 2021, and will close on December 06, 2021. The Benchmark Index of the fund is Taiwan Capitalization Weighted Stock Index (TAIEX). The minimum investment required is Rs 500 and in multiples of Re 1 thereafter. The fund will be managed by Kinjal Desai (Dedicated Fund Manager for Overseas Investments).

Commenting on the NFO, Sundeep Sikka, ED and CEO, NIMF said, “The launch of Nippon India Taiwan Equity Fund with Cathay SITE is in line with our objective to become a global asset manager based out of India to provide international diversification to Indian investors leveraging Nippon Life Insurance’s global network. The launch of this fund is a stepping stone to launch multiple products through this collaboration of the Nippon Life Insurance Global network. Taiwan is the 2nd largest country by weight in the MSCI EM index after China. We think it is an interesting opportunity for Indian investors.”

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Andy Chang, President and CEO, Cathay SITE, was quoted in the statement as saying, “We are excited about the launch of the first Taiwanese equity Fund in India. Cathay SITE has long been cultivating Taiwan market. It’s our honor to extend our experience in Taiwan equity investment to NIMF and to offer Indian investors the opportunities to ride a wave of the technology megatrend. I am sure this is one of the many new products collaborations we will be doing to get Indian money into Taiwan and launching Indian products in Taiwan.”

Taiwan is considered to be one of the fastest-growing emerging markets and has the 2nd Largest Weightage in MSCI EM Index.

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