IDFC Mutual Fund launches its first international fund IDFC US Equity Fund
Rising American equities are attracting capital from all corners of the world. Indian investors too have taken up investing in American stocks. The tribe has seen one more addition in the form of IDFC US Equity Fund. The maiden international equity scheme’s new fund offer is launched by the fund house on July 29, 2021.
The scheme will invest in the units of J.P Morgan US Growth Fund, started in 2000. The JP Morgan scheme has an an AUM of USD 1.8 billion as on June 30, 2021. It is an actively managed scheme and has growth investing philosophy at its core. With deep US understanding and adopting a bottom-up approach to identify ESG compliant companies with a sustainable competitive advantage and strong price momentum the scheme should work for investors with long investment timeframe. The underlying fund portfolio consists of 60- 90 fundamentally strong stocks with 40% of the revenue of the underlying stocks contributed by countries outside the US.
Highlighting the rationale behind launching the IDFC US Equity Funds of Fund and relevance of investing in US equities now, Vishal Kapoor, CEO, IDFC Asset Management Company said, “Including an international fund helps bring a geographical diversification to an investor’s portfolio. The US market is at the forefront of new-age innovations across different sectors and investors can reap benefit of those unique businesses.”
US equities can be an ideal complementary addition to the investor’s portfolio as it has a low correlation with Indian equities, facilitating effective diversification and exposure to USD, which is a key asset. Higher US equity market performance can be attributed to the superior earnings growth making it a perfect destination for earning attractive returns with low risk.
There are 46 other schemes that invest in overseas assets. Over last one year, the worst performing scheme with a loss of 21.17% is DSP World Gold Fund. Edelweiss US Technology Fund topped the performance chart with 47.4% returns.
The NFO will close on August 12, 2021.