Schroders has launched the Schroder ISF Indian Opportunities, a sister fund to the existing Schroder ISF Indian Equity fund.
The new fund will have a different management style to ISF Indian Equity and be advised by Axis Asset Management Company (Axis AMC).
It takes an unconstrained all cap approach versus a fundamental larger cap approach and is not managed relative to a benchmark, says Schroder.
The fund is managed by Schroders' Asian equity investment team and advised by Axis AMC. Axis AMC has a team of seven experienced investment professionals with a strong track record in managing Indian equities. The fund will leverage Axis AMC's on the ground expertise in India to identify the best investment opportunities for capital growth. Investments will primarily be in equity and equity related securities of Indian companies that have substantial business exposure to India.
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Chandresh Nigam, managing director and chief executive Officer, Axis AMC, said: "India has been among the fastest growing major economies in the last 20 years. While India has certain short and medium term cyclical challenges, it has a number of long term competitive advantages that have allowed it to grow on a sustained basis.
"More importantly, quality Indian companies have been able to participate in this growth by growing their profits and rewarding shareholders. Our investment process focuses on bottom-up stock selection of quality companies that are likely to sustain growth over the medium to long term. We believe that the Indian economy is resilient and once the immediate headwinds subside, both global and local investors should revert their focus back to the long term potential of the country.
Richard Mountford, chief executive, Asia Pacific, Schroders, said: "This is an exciting addition to our existing Indian equity proposition for investors seeking capital growth from a wide range of securities in India. It is also our first fund launch following our partnership with Axis AMC, which will give investors access to their successful and proven long-term track record of investing in India."