The new fund offer or NFO of the scheme is open for subscription and it will close on September 21.
The performance of the scheme will be benchmarked against S&P Developed Ex-U.S. BMI Total Return Index. The scheme will be managed by Ankush Sood (foreign investments), and Rakesh Shetty (debt investments).
The investment objective of the scheme is to generate long term capital appreciation by investing in units of global ETFs which track the performance of developed markets excluding US, subject to tracking error, if any.
According to the scheme information document, the scheme will invest 95-100% in units of developed market Ex US ETF schemes, and 0-5% in units of liquid scheme and / or money market instruments.
The minimum application amount is Rs 500 and in multiples of Re 1 thereafter for lumpsum investments. The minimum application amount for weekly, fortnightly, and monthly SIP is Rs 500 and multiple of Re 1 thereafter with minimum 12 instalments. For quarterly SIP, the minimum application amount is Rs 1,500 and multiple of Re 1 thereafter with minimum four instalments.The scheme will offer regular and direct plans with growth option only. The Exit load is 1%, if redeemed on or before 15 days from the date of allotment. If redeemed after 15 days from the date of allotment, the exit load is nil.The scheme is suitable for investors who are seeking long-term capital appreciation and want to invest in global ETFs which track the performance of developed markets exUS.
Should you invest? ETMutualFunds always ask investors to invest in an NFO only if it offers something unique – that is, some investment option that is not available in the market or adding something to the existing available option.
This is the only scheme benchmarked against this global index. The benchmark for the scheme – S&P Developed Ex-US BMI Total Return Index – considers all constituents of S&P Global BMI. The weightage is given based on the float-adjusted market-capitalisation of the stock. As you can see, since this is the first scheme to invest in this global index, you can only rely on the performance of the index. The index has offered a little over 7% in both five and 10 years. You may use it only for geographical diversification if you have a very large portfolio.