A new mutual fund scheme for NRI investors in Oman has been launched by an Indian asset management company.
The mutual fund, Select Micro Cap Series VI launched by Sundaram Asset Management Company, is for a 42-month period and 75 per cent of the corpus fund will be invested in Indian growth stocks.
The fund will focus on capital appreciation by investing predominantly in equity-related instruments of companies that can be termed as micro-caps, a Times of Oman report said.
"A company whose market capitalization is equal to or lower than that of the 301st stock by market cap on the National Stock Exchange (NSE) at the time of investment will be considered to be in micro-cap category," head of Sundaram Asset Management Company, Middle East and Africa Region, Ramesh Krishnamurthy said.
He said this while making a presentation on the mutual fund scheme as well as about the economic outlook of India, which was organized by QBG Geojit Securities recently, the report said.
Krishnamurthy said a minimum of 65 per cent will be invested in micro-cap companies, 35 per cent in other equity and equity-related securities, fixed income securities and money market instruments.
He said the investor-friendly policies of the new Indian government have already started generating results.
The government is focused on developing infrastructure, which will support growth.
He said the uncertainties that haunted the market in the past are not there.
