Mumbai: Deutsche Asset Management (India) Pvt. Ltd. on Tuesday (31 July) launched an open-end overseas fund of funds to invest across the globe through an international fund of its parent.
DWS Global Thematic Offshore Fund would mainly invest in units of Singapore-domiciled DWS Strategic Themes Fund, which invested in companies and countries that might not be part of the MSCI World Index, the fund house said.
“The objective is to develop an all-season portfolio that aims to mitigate the peaks and troughs of the global economy,” Chief Executive Officer Vijay Mantri said.
“If you invest entirely in Indian markets the returns may be relatively more volatile, he said, adding the fund would help investors manage risks of different markets.
The fund, open for subscription till 28 August, would invest at least 80% of the assets in units and securities issued by overseas mutual funds or unit trusts, and the rest in debt and money market instruments, the fund house said.
So far this year, four other asset managers, including Fidelity and DSP Merrill Lynch, have launched funds with mandate to invest in overseas markets.
Deutsche’s fund would charge an entry load of 2.5% on investment of less than Rs50 million and 0.5% on redemption within one year.
On investment of Rs50 million or more, the fund will not charge any entry load, but exits within 6 months of investment would attract a fee of 0.5%.
The fund house managed assets worth about Rs69 billion at the end of June, data from Association of Mutual Funds in India showed.