TECHIES in search of a better investment option, have a chance to ensure good returns from a new instrument being launched soon. IIFL Asset Management have launched a new mutual fund scheme for investment in equity and equity related securities.
The IIFL Capital Enhancer Fund – Series 1 aims to provide the benefits of equity upside with a hedge against the market downside.
Amit Shah, CEO, IIFL asset management business said: “IIFL Asset Management understands investors’ sentiment towards equity risks and intends to address their concerns by offering them improved prospects. The IIFL Capital Enhancer Fund – Series 1 is tailored with an objective to limit the downside by investing in a ‘put option’ thus providing the investor a hedge against a market correction. Our Studies have shown that 95 per cent of portfolio returns in long term are derived from appropriate asset allocation and only five per cent derived from product selection. IIFL Capital Enhancer Fund – Series 1 aims to offer comfort to long term investors to focus on appropriate asset allocation rather than being worried about short term volatility.”
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.
According to Prashasta Seth, CEO, IIFL asset management limited and fund manager of the scheme, “The Capital 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 in long-term investment and opening up to the risks involved as well. Our latest offering specifically addresses investors’ apprehensions by aiming to reduce the risks involved. IIFL Asset Management has always been successful in creating a niche for itself in the industry by moving away from regular products. Our previous offering(s) under Alternative Investment Funds category i.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 31 st December 2017) and has become one of the largest AIFs in the country.”