This mutual fund scheme will let you invest solely in Taiwan; check out details

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Nippon India Mutual Fund has launched the Nippon India Taiwan Equity Fund, which is the country’s first open-ended equity scheme focused on Taiwan. The fund will be advised by Cathay SITE, which is the largest asset manager in Taiwan with assets under management (AUM) of $42.8 billion.

Further, the two fund houses have also joined hands for an exclusive strategic collaboration for jointly or severally developing, managing, advising, marketing, and distributing each other’s investment products in India and Taiwan. Incidentally, Cathay SITE is also the largest segregated account manager in the Taiwanese equity market for the country’s public pension fund.

The fund will follow a multi-cap investment strategy with a portfolio comprising growth and value stocks, even as the focus will be on new technology trends while holding less than 10 per cent in a single stock. Interestingly, Taiwanese companies command more than half of the world’s market share in manufacturing of semiconductors/Integrated Circuits (IC).

The benchmark index of the fund is Taiwan Capitalization Weighted Stock Index (TAIEX), which has gained a little over 19 per cent in the current calendar year. In the last one month, when India’s S&P BSE Sensex lost nearly 3 per cent, TAIEX gained more than 6 per cent.

Taiwan is considered to be one of the fastest-growing emerging markets and has the second-largest weightage in the MSCI Emerging Markets Index. It has a weightage of 14.7 per cent in the index and is behind only China. India has the fourth-largest weightage in the index at 12.2 per cent.

The NFO will open for subscription on November 22 and close on December 6. The minimum investment required is Rs 500.

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