Mutual Fund News : Nippon India Mutual Fund Introduces Nippon India Taiwan Equity Fund

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Nippon India Mutual Fund has launched an open-ended equity scheme – Nippon India Taiwan Equity Fund.

The scheme will follow a Taiwan focused theme and will predominantly invest in equity and equity related securities of companies listed on the recognized stock exchanges of Taiwan.

The investment objective of Nippon India Taiwan Equity Fund is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on the recognized stock exchanges of Taiwan and the secondary objective is to generate consistent returns by investing in debt and money market securities of India. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Under normal circumstances, 80% to 100% of the funds portfolio will be invested in Equity and Equity related Instruments listed on the recognized stock exchanges of Taiwan (including initial and follow on public offerings to be listed at recognized stock exchanges of Taiwan). Whereas upto 20% of its assets can be invested in Debt & Money Market Instruments.

The investment strategy of Nippon India Taiwan Equity Fund as mentioned in the Scheme Information Document (SID) is as follows:

Nippon India Taiwan Equity Fund would create a diversified portfolio of companies participating in the growth-oriented sectors of Taiwan and that are listed on recognized stock exchanges of Taiwan. The Fund will invest in companies across market capitalization.

The investment philosophy of Nippon India Taiwan Equity Fund would be a blend of top down and bottom up approach without any extreme sector bias. The sectors would be mainly assessed on their growth potential in the mid and long term. On the other hand, companies within the selected sectors would be analyzed taking into account the business fundamentals like nature and stability of business, potential for future growth and scalability, sales volume, earning performance, corporate image, company’s financial strength and track record etc.

Nippon India Taiwan Equity Fund will endeavor to follow a disciplined investment approach and the portfolio will be reviewed & rebalanced at regular intervals, whenever deemed necessary.

The investments in debt instruments carry various risks like interest rate risk, liquidity risk, default risk, purchasing power risk etc. While they cannot be done away with, they can be minimized by diversification and effective use of hedging techniques.

Investment views / decisions will be taken on the basis of the following parameters:

  1. Prevailing interest rate scenario

  2. Quality of the security / instrument (including the financial health of the issuer)

  3. Liquidity/Maturity profile of the instrument

  4. Any other factors in the opinion of the fund management team.

Nippon India Taiwan Equity Fund’s performance will be benchmarked against Taiwan Capitalization Weighted Stock Index (TAIEX).

The fund will be managed by Kinjal Desai.

The NFO opens for subscription on November 22, 2021 and closes on December 06, 2021. The scheme will reopen for continuous sale and repurchase on or before December 17, 2021.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth and Income Distribution cum capital withdrawal (IDCW) (Payout and Reinvestment).