New Delhi: ING Investment Management India today said it expects to raise $300 million ( Rs1,200 crore) from its open ended Global Real Estate Securities Fund (GRESF).
“We expect to raise about $300 million from the New Fund Offer (NFO) which will invest in around 120 stocks across 21 countries,” ING Investment Management India Managing Director Vineet Vohra told reporters here.
The fund seeks to provide investors with diversified returns comprising income and capital appreciation over time, he said, adding, the scheme has given a return of over 25% in dollar terms in the last 5 years.
It opens up a new asset class for Indian investors and aims to offer an investor returns that are better than a fixed income product but with lower volatility than an equity fund, he said.
The scheme will act as a feeder fund for Cayman Islands registered ING Global Real Estate Securities fund which is sub-advised by U.S based ING Clarion Real Estate Securities.
Globally, the fund house manages asset around $145 billion through the umbrella fund ING Real Estate fund.
Benchmarked against Citigroup World Property Index, the fund invest about 55% in the Real Estate Investment Trust followed by 40% in the real estate operating companies in about 20 countries.
The fund which closes for subscription on 14 December does not have any exposure to the U.S sub-prime housing sector.
Available in three options, dividend, growth and bonus options, the minimum application amount for the fund is Rs 5,000.