Money Today-Plexus Management new fund evaluation.
Offer open: Till 10 July 2008
Scheme type: Open-ended fund of funds equity
Minimum investment: Rs 5,000; unit price: Rs 10
Loads: Entry load: 2.5%
Exit load: 1% (before 6 months)
Options: Growth, bonus and dividend (reinvestment and payout)
Investor grievances: Vilas R Solanki. Tel: (022) 39827999
Objective: To seek capital appreciation by investing predominantly in ING (L) Invest Latin America Fund
Benchmark: MSCI EM Latin America 10/40 ND Index
Fund manager: Roberto Lampl
Asset allocation:
65-100% ING(L)Invest Latin America Fund
0-35% Other overseas mutual fund schemes
0-35% Money market instruments including reverse repo
Comparable existing schemes:
Fund Name: DWS Global Thematic Offshore
NAV* (Rs): 9.91
3-month return(%): 10.23
Since inception(%): -2.27
*NAV as on 18 June. Source: NAVIndia
Idea distiller: Latin America provides diverse opportunities for investments. The key drivers are commodities, metals, banks and the service sector. The low market cap to GDP ratio, low cost and good infrastructure, a large youth population and improving consumption pattern hold out promise. A good case for investing to diversify your portfolio
Fund house report: ING AMC manages assets worth Rs 9,161 crore across 76 schemes (as on 31 May)
Returns profile: 3/5
Risk profile: 3/5
Fund managers report: Performance of fund manager
Returns profile: 5/5
Scheme DNA: Four fundamentals of the fund scheme
Unique idea: High
Return possibility: High
Risk: Medium
Operability/complexity: High
Who should apply: It’s a fund for the aware investor. In the past six months, when most global markets have lost wealth, the LATAM index has given positive returns. If you wish to participate in other economies and truly spread your investments, this is your ticket. The ING fund is a leader in the LATAM segment.
Comments: For HNIs, it should have an intuitive appeal. Quite akin to buying a villa in Copacabana and seeing the value appreciate over time.
