Mumbai: Kotak Mahindra Asset Management Co. Ltd said on Monday it will launch an equity fund on 27 November to invest in domestic as well as global companies related to the infrastructure sector.
Kotak Indo World Infrastructure Fund, open for subscription till 22 December, would invest at least 65% of the assets in shares of Indian firms likely to benefit from the country’s rising expenditure to strengthen its infrastructure.
It will also invest 10-35% of its assets in global firms or units of mutual funds related to the infrastructure sector, the fund house said.
“It will adopt a feeder route (to invest overseas),” chief executive officer Sandesh Kirkire said, adding that his firm would invest in a global infrastructure fund from international asset manager T. Rowe Price.
Kotak mutual fund had in February joined hands with T. Rowe Price and later launched an emerging market equity fund in July that mainly invests in units of T. Rowe Price Funds Sicav-Global Emerging Markets Equity Fund.
Infrastructure funds dominated the returns chart in 2006 and have put up a similar performance this year, attracting Indian investors and fund firms’ interest. Four of India’s top 10 diversified equity funds in 2007 are infrastructure funds.
While many diversified equity funds now invest more in the sector, the number of pure infrastructure funds has gone up to 15 now, from seven at the start of the year, data from fund tracker Icra Online Ltd showed.
“That is the one space which we were lacking in. We want to plug that,” Kirkire said. A similar fund from Tata Asset Management collected Rs2,200 crore from 0.43 million applications in September-October. Reuters