NFO Analysis: Nippon India Taiwan Equity Fund
Nippon India Mutual Fund offers various types of schemes such as equity-oriented, debt-oriented, ETFs, gold and retirement. The total assets under management of the funds as of September 2021 is Rs 2,65,458.55 crore, which is launching the Sectoral/Thematic fund. This is an open-ended equity scheme following Taiwan focused scheme. The performance of the scheme will be benchmarked against the Taiwan Capitalization Weighted Stock Index (TAIEX).
Subscription Date: The NFO was launched on 22 November 2021, while it will close on 6 December 2021.
Objective of the scheme: The objective of the scheme is to provide long term capital appreciation to investors by predominantly 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. Nonetheless, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
Investment Strategy: The investment strategy of the scheme is to participate in the growth-oriented sectors of Taiwan and are listed on recognized stock exchanges of Taiwan and create a portfolio. The investment will be based on 3 Ms such as Dominant Market Share from a successful business model, sizable market from mass demand and sustainable high margin from superior technology or high entry barrier. The investment philosophy would be a blend of top-down and bottom-up approaches without any extreme sector bias. The fund will follow a multi cap investment strategy and will focus on new technology trends.
Fund Manager: Kinjal Desai (dedicated fund manager for Overseas investments).
This fund will be suitable for investors with high-risk capacity as the fund manager of this scheme will allocate the majority of investors’ capital towards equity and equity-related instruments. Investors willing to diversify their portfolio against different themes and want to enjoy the benefit from another country’s growth can choose to invest in this fund. NFO is not the best option to invest in as there is no historical data available to track the performance. As this is a new theme, one can invest in the same, if they are ready to take up the risk. Otherwise, investors who are willing to invest but does not have a high-risk appetite should wait for at least one year to see how this scheme is performing.