BY A. E. JAMES | SEPTEMBER 14, 2014 , 6 : 37 PM GST | Times of Oman
Ramesh Krishnamurthy, head, Middle East and Africa Region, Sundaram Asset Management Company, said that the close-ended scheme is open for subscription from September 10 to 24 and QBG Geojit Securities will assist NRIs interested in applying for the scheme from Oman.
Muscat: Sundaram Asset Management Company has launched a close-ended mutual fund scheme, which is available for non-resident Indian (NRI) investors based in Oman.
The new mutual fund — Select Micro Cap Series VI — is for a 42-month period and as much as 75 per cent of the corpus fund will be invested in Indian growth stocks. `
The fund will focus on capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as micro-caps.
A company whose market capitalisation is equal to or lower than that of the 301st stock by market cap on the National Stock Exchange (NSE) at the time of investment will be considered to be in micro-cap category, said Ramesh Krishnamurthy, head, Middle East and Africa Region, Sundaram Asset Management Company, while making a presentation on the mutual fund scheme as well as the economic outlook of India, which was organised by QBG Geojit Securities recently.
Investing in equities
The close-ended scheme is open for subscription from September 10 to 24 and QBG Geojit Securities will assist NRIs interested in applying for the scheme from the Sultanates of Oman.
As far as the asset allocation is concerned, Krishnamurthy said a minimum of 65 per cent will be invested in micro-cap companies, 35 per cent in other equity and equity-related securities, fixed income securities and money market instruments.
Krishnamurthy said the investor-friendly policies of the new Indian government, which completed more than three months, have already started generating results. The government is focused on developing infrastructure, which will support growth.
He said the uncertainties that haunted the market in the past are not there. “Japan, France and China are keen to invest in India. Rest of the world is rushing to India and we should also be part of the growth process.”
The fund’s corpus money will be invested in industries that are going to benefit from these investments.
The recent easing of crude oil prices is beneficial for Indian economy, he said, adding that the deficit in balance sheet will come down as the country imports 75 per cent of its local demand.
Ramesh Krishnamurthy also noted that the promising industries of India include tyre, paint and auto ancillaries.