Mumbai/Bhubaneswar: IIFL Asset Management Ltd (IIFL AMC) on Monday
announced the launch of IIFL Capital Enhancer Fund – Series 1 (an
annual interval scheme investing in equity and equity-related
securities) (‘the scheme’), a scheme that aims to provide the benefits
of equity upside with a hedge against the market downside.
Speaking on the occasion, Chief Executive Officer (CEO), IIFL Asset
Management Business Amit Shah 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 percent of portfolio returns in long
term are derived from appropriate asset allocation and only 5 percent
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, Shah added.
The scheme will invest predominantly in large cap portfolio and hedge
the portfolio with the Nifty 50 Put Option. This allows investors to
invest in a theme that aims to ‘minimise the risk and maximise the
upside.’ The scheme aims to generate alpha by limiting the downside
with a potential to an uncapped upside. The Annual Interval feature
allows investors an option to subscribe or exit during the specified
transaction period every year, he added further.
CEO, IIFL Asset Management Limited and Fund Manager of the scheme
Prashasta Seth said, “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.”
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