IIFL Asset Management launches IIFL Capital Enhancer Fund
Bangalore, April 2018: IIFL Asset Management Ltd (IIFL AMC) announced today the launch of IIFL Capital Enhancer Fund - Series 1 (An Annual Interval Scheme investing in Equity and Equity Related Securities) (‘the scheme’), a scheme that aims to provide the benefits of equity upside with a hedge against the market downside. The scheme is structured as an Annual Interval Scheme, with an objective to achieve long term capital appreciation by investing in equity and equity related securities, with strategy of hedging the portfolio with Nifty 50 Put Option and other Equity derivatives.
The asset allocation scenario in India suggests thatinvestors prefer fixed income over equity. This arises from the perception thatfixed income provides regular and stable returns as well as security ofcapital, whereas equity infuses a sense of risk. However,investors discount thefact that though equities seem volatile in the short term, they create wealthin the long term.
Mr. Amit Shah, CEO, IIFL Asset ManagementBusiness said: “IIFLAsset Management understands investors’ sentiment towards equity risks andintends to address their concerns by offering them improved prospects. The IIFLCapital Enhancer Fund- Series 1 is tailored with an objective to limit thedownside by investing in a ‘put option’ thus providing the investor a hedgeagainst a market correction. Our Studies have shown that 95% of portfolioreturns in long term are derived from appropriate asset allocation and only 5%derived from product selection. IIFL Capital Enhancer Fund - Series 1aims to offer comfort to long term investors to focus on appropriate assetallocation rather than being worried about short term volatility.”
The schemewillinvest predominantly in large capportfolio and hedgethe portfolio with the Nifty 50 Put Option. This allowsinvestors to invest in a theme that aims to ‘minimise the risk and maximise theupside.’ The scheme aims to generate alpha by limiting the downside witha potential to anuncapped upside. The Annual Interval feature allows investors an option tosubscribe or exit during the specified transaction period every year.
Mr. Prashasta Seth, CEO, IIFL AssetManagementLimited and Fund Manager of the scheme said: “TheCapital Enhancer Fund- Series 1 is designed to suit the needs of our investors.India is in a very exciting phase; people are slowly identifying value inlong-term investment and opening up to the risks involved as well. Our latestoffering specifically addresses investors’ apprehensions by aiming to reducethe risks involved. IIFL Asset Management has always been successful increating a niche for itself in the industry by moving away from regularproducts. Our previous offering(s) under Alternative Investment Funds categoryi.e.IIFL Special Opportunities Fund focusing on Pre-IPO and IPO space,introduced in India for the first time, has garnered USD 1.1 billion (as on 31st December2017) and has become one of the largest AIFs in the country.”
India is set to become the fifth most attractivemarket for investments. The optimism over global economic growth is at a recordlevel and in the case of India it is even higher. IIFL AMC strives to create aniche in the industry by moving away from the conventional and offering aplethora of differentiated, innovative products across asset classes backed bystrong holistic research filling a market gap.The Capital
Enhancer Fund – Series 1 is another step towardsproviding solutions that help the investors to maximise profits and minimiserisk.
Investors looking to improve capital gains andbeginners contemplating their first market investments can invest in regular ordirect plan(s) offered by the IIFL Capital Enhancer Fund- Series 1, with aminimum purchase amount of Rs. 5,000.