Public Mutual launches fund focusing on India

KUALA LUMPUR: Public Mutual launched the Public India-Global Equity Fund (PINGEF) on Friday.

This is Public Mutual’s first unit trust fund investing in global markets focusing on India. 

“To achieve capital growth over the medium- and long-term, PINGEF will invest 75% to 98% of its net asset value (NAV) in equities, while the remainder will be invested in fixed income securities and liquid assets,” it said.

 At least 30% of the fund’s NAV will be invested in India’s equity market, while the balance will be invested in the US, Europe and selected markets in the Asia Pacific region. 

Public Mututal said the fund will tap into investment opportunities in the global and regional markets. This strategy will provide medium- to long-term investors with the benefit of a diversified equity portfolio.

It said India is one of the fastest-growing economies in the world, with an average gross domestic product (GDP) growth of 7.1% for the 2000-2016 period. Underpinning the growth were rising consumer and investment spending. 

After growing 6.7% in 2017, India’s GDP is expected to advance faster with a growth of 7.4% in 2018. The favourable demographic profile, an improving literacy rate and an increasingly affluent middle-class will help to underpin the growth in the country’s services industry. 

The initial issue price for fund is 25 sen per unit during the 21-day initial offer period from Friday to Feb 8.

The minimum initial investment amount is RM1,000 while the minimum additional investment amount is only RM100. 

During the initial offer period, the promotional sales charge is 5.25% of the initial issue price per unit. 

Pubic Mutual said investors who invest in this fund during the initial offer period will stand a chance to win lucky draw prizes including the grand prize of a travel package to India for two worth RM14,000. 

Investors will also receive one lucky draw entry for every RM5,000 invested in this fund.