Nippon India Taiwan Equity Fund NFO Review
Nippon India has launched Taiwan Equity Fund. This NFO is open for subscription from November 22, 2021 to December 6, 2021. It is an open ended multi cap strategy fund with Taiwan centric theme. This fund is the benchmark TAIEX Index. This index has outperformed the S&P BSE 500 in the last 10+ years.
INVESTMENT OBJECTIVE
The primary investment objective of scheme is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies listed on the recognized stock exchanges of Taiwan and the secondary objective is to generate consistent returns by investing in debt and money market securities of India.
However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.
INVESTMENT STRATEGIES?
The investment strategy of the fund would be to create a diversified portfolio of companies participating in the growth oriented sectors of Taiwan and are listed on recognized stock exchanges of Taiwan. The Fund will invest in companies across market capitalization. The investment philosophy would be a blend of top down and bottom up approach without any extreme sector bias. The sectors would be mainly assessed on their growth potential in the mid and long term. On the other hand, companies within the selected sectors would be analyzed taking into account the business fundamentals like nature and stability of business, potential for future growth and scalability, sales volume, earning performance, corporate image, company’s financial strength and track record etc.
SCHEME BENCHMARK
Taiwan Capitalization Weighted Stock Index (TAIEX)
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) measures the performance of aggregate listed stocks on Taiwan Stock Exchange (TWSE). TAIEX is the most prominent benchmark of the Taiwan securities market.
Asset Allocation
Instruments | Minimum | Maximum | Risk Profile |
Equity and Equity related Instruments listed on the recognized stock exchanges of Taiwan | 80% | 100% | Medium to High |
Debt & Money Market Instruments | 0% | 20% | Low to Medium |
NFO Details
Scheme Opens | 22-Nov-21 |
Scheme Closes | 06-Dec-21 |
Scheme reopens for continuous purchase/sale | 17-Dec-21 |
Minimum Lumpsum | Rs 500 |
Minimum SIP | Rs 1,000 for 6 months |
NAV of the fund | Rs 10 during NFO period |
Entry Load | Nil |
Exit Load | 1% if redeemed within 3 months |
Benchmark | Taiwan Capitalization Weighted Stock Index (TAIEX) |
Fund Manager | Ms. Kinjal Desai |
Performance over last 10 years
CY | TAIEX (INR) | S&P BSE 500 |
|---|---|---|
2021 YTD* | 18.20% | 30.90% |
2020 | 33.80% | 16.10% |
2019 | 28.40% | ​8.50% |
2018 | -2.80% | 3.20% |
2017 | 18.00% | 35.90 |
2016 | 16.30% | 4.40% |
2015 | -9.90% | -0.80% |
2014 | 3.80% | 36.60% |
2013 | 23.00% | 3.10% |
2012 | 17.10% | 31.00% |
2011 | 9.60% | 26.80% |
Average | 12.40% | ​12.30% |
*Till 30 Sep 2021; The above data pertains to prescribed index(s) and shall not be construed as indicative/ future returns of the scheme. Past performance may or may not be sustained in future. Source: Bloomberg
High Dividend Yield in Taiwan Stock Market
Dividend yield of Taiwan listed companies is 2.8% as of September 2021. High dividend yields make Taiwan stocks attractive to global investors in a low interest rate environment.
Why to invest in the Nippon India Taiwan Equity Fund?
This fund invests in stocks that are listed on Taiwan Stock Exchanges. Taiwan has been recognized as a global player in the semiconductor and electronics industry. Taiwan plays a critical role in the entire supply chain. This provides an excellent opportunity for investors to participate in the growth story of Taiwan.
Major risk factors
This underlying fund would invest in companies listed in Taiwan. There is concentration risk. If there is down trend in the growth story of Taiwan and the companies share prices fall, your investment could be at risk.
Suitability
This product is suitable for investors who are seeking*
Investors looking for long-term Wealth Creation
Investors whose investment time horizon is five years or more, this scheme may be suitable for them.
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them
Note: The above information has been sourced from the Scheme Information Document provided by Nippon India Asset Management. Read the entire document before investing, Disclaimer: Jaiprakash (ARN/Distributor - 70524; brand name Vasundhra Investment ) is the distributor of the mutual fund. Please consult your investment advisor before investing.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.