Did you know that the top 7 nations account for 60% of the growth in the global GDP? Investing in these developed markets gives you the chance to do so in untapped markets and the bluest of the blue chips globally, or, to put it another way, it allows you to do so in industries that are not available in India.
Why should you invest in the India growth opportunity Fund?
- Opportunities to invest in industries not available in India: Global markets are home to multinational corporations with the scale, customer base, distribution network, and competitive moat that, shortly, few Indian enterprises will be able to match.
- Global Diversification: You have the chance to diversify globally to reduce the risks associated with a specific market because different markets succeed at different periods.
- Managing Portfolio Risk; Global exposure can reduce the risk of the entire portfolio.
- Past performance: The fund has consistently produced above-average returns.
What are the risks involved?
- The value of the investment fund may change due to adjustments in trading activity, settlement procedures, general interest rates, the cost of the underlying securities, and other market forces.
- It cannot be sure that the Scheme’s future performance will mirror its prior performance. It is not a scheme with guaranteed returns.
- The fund manager may invest in foreign markets depending on the Scheme’s investment goals. Risks associated with this include fluctuations in foreign exchange rates, variations in the make-up of other nation’s stock markets, government restrictions on restoring capitalism, and political turmoil.
- The fund manager may purchase unlisted securities within regulatory bounds to boost overall yields. However, this could make the portfolio’s total risk higher.
Who should invest in India Growth Opportunities Fund?
This programme is available to investors who seek to build wealth over a five-year or longer investment horizon. This programme is appropriate for individuals seeking a chance to diversify into foreign stock markets.
The Scheme is currently in operation; as a result, neither a previous track record nor details on the top 10 holdings and fund allocation are provided. You might have to rely on the fund manager’s prior results.
Although they operate similarly to multi-cap funds, large and mid-cap funds give fund managers less freedom. On the other hand, a Multi-cap fund allows the fund manager to select any exposure to Large-caps, Mid-caps, or Small-caps.
According to SEBI’s new classification, you can seek diversification through multi-cap funds, but you now have the option to select specific large- and mid-cap funds, which provide you with the chance to spread your investment over stocks of large and mid-sized companies.
What will be the Investment Strategy?
The equity portfolio will be built using these 3 pillars:
- Good portfolio
- Enduring expansion in all market cycles
- Low turnover
The construction of the total portfolio would combine top-down and bottom-up strategies. While the bottom-up procedure will concentrate on the growth potential of individual stocks from a financial viewpoint to arrive at the stock selection, the top-down approach will be based on macroeconomic analysis and used to come at the geographical market and sectors/themes.
The AMC uses a “Fair Value”-based research methodology to evaluate each stock’s potential for appreciation. The universe of equities is carefully chosen to include businesses with strong business models and enduring competitive advantages over their competitors.
Investments in foreign assets will take advantage of prospective possibilities worldwide in developed and emerging equity markets.
Conclusion
To achieve long-term capital growth through purchasing a diverse portfolio of equity and equity-related instruments in India and abroad. The achievement of the Scheme’s investment goal, however, cannot be guaranteed.
