Aditya Birla Sun Life AMC International (IFSC) has launched two retail fund of funds schemes at Gujarat International Finance Tec-City (GIFT City), offering exposure to emerging market equities and Indian equities through investments in other funds.
The two schemes are the ABSL Emerging Market Equity Fund (Outbound) and the ABSL India Growth Fund (Inbound), announced on October 15.
They are the initial retail offerings from the asset manager’s wholly owned subsidiary operating in GIFT City’s International Financial Services Centre (IFSC).
The subsidiary is regulated by the International Financial Services Centres Authority (IFSCA).
What do the two funds invest in?
The ABSL Emerging Market Equity Fund is an open-ended fund of funds scheme that seeks long-term capital appreciation by investing in funds focused on emerging markets. It will invest predominantly in units of the ARGA Emerging Market Equity Fund and/or other emerging market funds.
The scheme is intended to provide eligible resident Indian investors access to emerging markets through the Liberalised Remittance Scheme (LRS), subject to applicable requirements. Eligible Indian corporates can invest through the Overseas Portfolio Investment (OPI) route, subject to the relevant rules.
The ABSL India Growth Fund, meanwhile, is an open-ended fund of funds scheme that invests in equity-oriented schemes of Aditya Birla Sun Life Mutual Fund, including exchange-traded funds (ETFs) and index funds.
The scheme is aimed at eligible non-resident Indians (NRIs) and foreign investors seeking exposure to Indian equities through these underlying schemes.
Minimum investment and other details
The minimum initial investment in each fund is $500, with additional investments permitted in multiples of $100. Subsequent investments can start at US$100, also in multiples of $100, according to the company.
Both schemes invest through underlying funds rather than directly building portfolios of individual stocks. Their investment exposure differs, with one focused on emerging markets and the other on Indian equities.
Investors should review the scheme documents for details of the investment objective, underlying funds, fees and expenses, applicable eligibility criteria, tax implications and redemption terms before investing.
Aditya Birla Sun Life AMC established a presence at GIFT City through a branch operation in 2022. The newly launched schemes are part of its offerings through the IFSC subsidiary.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.