Mirae India-China Consumption Fund-NFO: Review Analysis & Details of Mirae India-China Fund: Finance Trading Times

Mirae India-China Consumption Fund-NFO: Review Analysis & Details of Mirae India-China Fund

This article contains info about Mirae Asset Mutual Fund India-China Consumption Fund NFO, Review, Analysis, Details & Opinion.
Many stories are floating around about the growth and prospects of the Emerging countries like India, China, Brazil, etc. Many things are said and claimed about the high growth, high demands of the bulgeoning populations in these countries. Mirae Asset Mutual Fund has come out with a new fund offer, specific to the countries of India and China, and claims to benefit from growth potential of the companies which will be generating their business and profits from the consumption in these 2 large countries.
In this article, we will analyse how good is this Mirae India-China Consumption Fund NFO, whether this Mirae India-China Consumption Fund offers anything new or unique for the investors and whether the investors should invest in Mirae India-China Consumption Fund.

Mirae India-China Consumption FundNFO: Review Analysis & Details

Let's begin with some basic details about Mirae India-China Consumption Fund.

What are the NFO dates for Mirae India-China Consumption Fund?
The NFO period for Mirae India-China Consumption Fund will open on March 9th, 2011 and will close on 23 March 2011. Mirae India-China Consumption Fund
What is so unique about this Mirae Asset India-China Consumption Fund?
In terms of the name and focus sector of this fund, this Mirae India-China Consumption Fund does sound to be unique. As of now, we are not aware of any other fund which is focussing on companies deriving business and revenue from the ever growing consumption needs from these 2 countries, hence this fund might be unique in that sense.
It primary focus will be consumption and related sectors for these 2 countries. The underlying assumption is that people of these 2 countries have increasing earning power and that will fuel the growth of the companies in the consumption sector hence this will be a niche area to invest. The middle class has growth potential, the urbanisation is happening at a rapid pace and rising incomes of the large population will ensure the growth continues to see big leaps. Whether this assumption continues to hold for your investment period, will be a question to look for.

The minimum application amount for Mirae India-China Consumption Fund is Rs. 5000 and afterwards in multiples of Rs. 1.

Mirae India-China Consumption Fund Entry Load: Nil
Mirae India-China Consumption Fund Exit Load: 1% if exit within 1 year, NIL afterwards.
SIP or systematic investment plan is also available.
No tax benefit will be available in Mirae Asset India-China Consumption Fund

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

There is a Management & Administration Fees - 1.25% and total recurring expenses will be upto 2.5%

One more thing to note is that majority of the capital allocated will be to Indian Companies - around 65%-90%. Rest 10%-35% will be to Chinese Companies. SO investors might end up owning a fund which primarily is into Indian Equities only, if the fund managers decide to go by 90% Indian companies investment. Then this fund might loose its uniqueness of India China Fund. Investors must keep an eye on the fund holdings, if they are really looking for an India-China fund.

What are the other competitor products available in comparison to Mirae India-China Consumption Fund?
As of now, we are not aware of any mutual fund available in India which is focussing on India and China.

However, There are other funds from Mirae Asset launched in the past: Mirae Asset Global Commodity Stock Fund MAGCS, Mirae Asset India Opportunities Fund, Mirae Asset Emerging Bluechip Fund
Investors who are keen on investing in the India China sector can look into this fund as an option.

Final Thoughts about Mirae India-China Consumption Fund?
This is a completely new sector in terms of geographical coverage. However, I would have been more pleased had the India-China allocation had been 50-50. As of now, at the current allocation, it is possible that this fund ends up holding only Indian companies, which will let it loose the uniqueness. Investors who believe in India China Growth story and believe that Mirae Asset Fund Managers will be able to generate good returns maintaining a right balance between India and Chinese holdings, can give it a shot
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