New Star is set to launch an Indian equity fund in a bid to take advantage of what it describes as "one of the world's strongest growth markets".
The New Star Indian Equity fund, set to be launched on 9 June, will invest in a wide range of up-and-coming Indian firms and will adopt a large cap bias, it says.
New Star will seek investment advice from Mumbai-based Tata Asset Management, a subsidiary of the Tata Group, throughout its management of the fund, which offers a 1% discount on the 5% initial charge between 9 and 27 June.
Mark Skinner, managing director of New Star Investment Funds, says: “The fund will give UK retail investors access to one of the world’s strongest growth markets.
“At New Star, we believe that local knowledge of the Indian market will be key to generating long-term outperformance and we are delighted to be partnering with such a prestigious organisation as Tata.”
New Star points to the recent success of the Indian economy, which boasts an average annual growth of 8.8% over the past four years and an estimated 8.7% growth over the year to March 2008, as the reason behind its decision to launch.
It adds India’s relatively low exposure to the global economic slowdown is another contributing factor to the country’s “considerable” medium-to-long-term growth potential, as exports represented only 16.5% of gross domestic product in 2007.
Minimum investment in the fund is £3,500, with an initial charge of 5% - outside the discount offer period - and an AMC of 1.5%.IFAonline
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