Mumbai, 11 April 2018: IIFL Asset Management Ltd (IIFL AMC) announced today the launch of IIFL Capital Enhancer Fund - Series 1 (An Annual Interval Scheme investing in Equity and Equity Related Securities) (‘the scheme’), a scheme that aims to provide the benefits of equity upside with a hedge against the market downside. The scheme is structured as an Annual Interval Scheme, with an objective to achieve long term capital appreciation by investing in equity and equity related securities, with strategy of hedging the portfolio with Nifty 50 Put Option and other Equity derivatives.
The asset allocation scenario in India suggests that investors prefer fixed income over equity. This arises from the perception that fixed income provides regular and stable returns as well as security of capital, whereas equity infuses a sense of risk. However, investors discount the fact that though equities seem volatile in the short term, they create wealth in the long term.
Mr. Amit Shah, CEO, IIFL Asset Management Business said: “IIFL Asset Management understands investors’ sentiment towards equity risks and intends to address their concerns by offering them improved prospects. The IIFL Capital Enhancer Fund - Series 1 is tailored with an objective to limit the downside by investing in a ‘put option’ thus providing the investor a hedge against a market correction. Our Studies have shown that 95% of portfolio returns in long term are derived from appropriate asset allocation and only 5% derived from product selection. IIFL Capital Enhancer Fund - Series 1 aims to offer comfort to long term investors to focus on appropriate asset allocation rather than being worried about short term volatility.”
The scheme will invest predominantly in large cap portfolio and hedge the portfolio with the Nifty 50 Put Option. This allows investors to invest in a theme that aims to ‘minimise the risk and maximise the upside.’ The scheme aims to generate alpha by limiting the downside with a potential to an uncapped upside. The Annual Interval feature allows investors an option to subscribe or exit during the specified transaction period every year.
Mr. Prashasta Seth, CEO, IIFL Asset Management Limited and Fund Manager of the scheme said: “The Capital Enhancer Fund - Series 1 is designed to suit the needs of our investors. India is in a very exciting phase; people are slowly identifying value in long-term investment and opening up to the risks involved as well. Our latest offering specifically addresses investors’ apprehensions by aiming to reduce the risks involved. IIFL Asset Management has always been successful in creating a niche for itself in the industry by moving away from regular products. Our previous offering(s) under Alternative Investment Funds category i.e. IIFL Special Opportunities Fund focusing on Pre-IPO and IPO space, introduced in India for the first time, has garnered USD 1.1 billion (as on 31st December 2017) and has become one of the largest AIFs in the country.”
India is set to become the fifth most attractive market for investments. The optimism over global economic growth is at a record level and in the case of India it is even higher. IIFL AMC strives to create a niche in the industry by moving away from the conventional and offering a plethora of differentiated, innovative products across asset classes backed by strong holistic research filling a market gap. The Capital
Enhancer Fund – Series 1 is another step towards providing solutions that help the investors to maximise profits and minimise risk.
Investors looking to improve capital gains and beginners contemplating their first market investments can invest in regular or direct plan(s) offered by the IIFL Capital Enhancer Fund - Series 1, with a minimum purchase amount of Rs. 5,000.
About IIFL Asset Management Limited
IIFL Asset Management Ltd. is part of IIFL Investment Managers. IIFL Asset Management (IIFL AMC) is a global asset management firm, launched in 2008 with the objective of providing differentiated investment products suited for the market environment. IIFL Asset Management Business refers to licensed asset management activity carried out by IIFL Investment Managers through its group companies based in Singapore, India and Mauritius. IIFL AMC’s differentiated suite of mutual funds, alternative investment funds and venture capital funds span public and private equities, fixed income securities and real estate. Its distinctive products bring out the entrepreneurial edge, agility and speed of execution of a boutique asset management firm.
“MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED DOCUMENTS CAREFULLY”
Disclaimer: In the preparation of the material contained in this document, the AMC has used information that is publicly available, including information developed in-house. Information gathered, and material used in this document is believed to be from reliable sources. The AMC however does not warrant the accuracy, reasonableness and / or completeness of any information. We have included statements in this document, which contain words, or phrases such as “will”, “expect”, “should”, “believe” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices etc. The AMC (including its affiliates), the Mutual Fund, the trust and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/are liable for any decision taken on this material. The portfolio of the scheme is subject to changes within the provisions of the Scheme Information document of the scheme. Please refer to the SID for investment pattern, strategy and risk factors. Investors are advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequence of subscribing to the units of IIFL Mutual Fund.