Gemini Investment Management’s MOSt India fund is attracting interest from multi-managers looking to diversify their funds with an Indian holding managed by a local expert rather than a global generalist.
India-based fund manager Motilal Oswal runs the fund, providing investors with access to its domestic knowledge.
The fund invests in a concentrated portfolio of 20 to 30 stocks that will be held for the long term. Motilal Oswal sees itself as a part-owner in the firms in which it buys shares, so it is not interested in banking short-term profits by buying stocks to sell a few months later.
Turnover will be low, keeping costs down relative to funds that are heavily traded – another plus for multi-managers.
Gemini says the buy-and-hold strategy distinguishes the fund from other Indian funds run by bigger, higher-profile fund management groups from places such as Singapore. The firm says Motilal Oswal is not well known in the UK but has a strong track record in India with its blend of value and growth strategies.
Gemini says the fund will appeal to multi-managers wanting exposure to India through a domestic manager rather than a global emerging markets or Bric fund from a generalist international management group.
Gemini managing director Stuart Alexander says: “Most Indian funds are trading funds but this has a buy-and-hold strategy that will not add to costs. The fund will appeal to asset allocators and will not trade in and out of markets as that is not the best way to create long-term wealth.”