Mumbai: ING Investment Management (India) Pvt Ltd said on Monday it will launch a fund of funds that would mainly invest in one of ING Group NV's existing real estate funds.
ING Global Real Estate Fund, open for subscription from Nov. 20, will mainly buy units of ING Global Real Estate Securities Fund, the asset manager said, adding it could also invest up to 35 per cent of the assets in similar overseas mutual funds.
"This fund opens up a new asset class for Indian investors," Vineet K. Vohra, who joined the fund firm as chief executive officer in July, said. "The need for a diversifier is quite visible in today's market place," he said, adding the fund is positioned to offer returns superior to those from fixed income funds with lower volatility than an equity fund.
ING Global Real Estate Securities Fund does not invest in properties directly, but in real estate investment trusts and real estate operating companies, the fund house said.
"Real estate should have a permanent position in the financial portfolio of investors. India has some catching up to do. The world already invests that way," Vohra said.
The fund will charge an entry load of 2.5 per cent on investment of less than Rs 1 crore and also recover an exit fee of 1 per cent for redemptions within 180 days.
Those investing Rs 1 crore or more will not have to pay entry load.
The fund house managed assets worth about Rs 9000 crore at the end of October, data from the Association of Mutual Funds in India showed.
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