Korea Investment Management Launches 'Korea Investment India Top 5 Leading Group Fund'

Focused Investment in 5 Leading Representative Groups Driving India’s Core Industries as the ‘Next China’

Korea Investment Trust Management announced on the 21st the launch of the ‘Korea Investment India 5 Major Representative Groups Fund,’ which invests in stocks of the five major representative groups leading India’s core industries.

The ‘Korea Investment India 5 Major Representative Groups Fund’ concentrates over 60% of its investments in the five major representative groups driving India’s core industries. These five major groups are Tata Group, Infosys, Reliance Industries, BAJAJ, and HDFC Bank, whose combined market capitalization is similar in scale to the top five domestic groups such as Samsung, LG, and SK. These groups are expected to continue growing steadily through the growth of the Indian market, emerging as the ‘Next China,’ and the government’s large conglomerate-centered economic policies.

The ‘Korea Investment India 5 Major Representative Groups Fund’ is expected to effectively invest in future core growth industries led by the Indian government through investments in representative group stocks. It allows diversified investments across the market, including finance, IT, and energy, without being concentrated in specific sectors. By including stocks of subsidiary companies, it also benefits from investing in rapidly growing small and medium-sized affiliates supported by the stable capital strength of the parent companies. Additionally, the average stock price return of the five major representative groups over the past five years has outperformed the index return, offering the advantage of concentrated investments focused on growth industries.

Based on subsidiary status data announced through corporate disclosures, the five major representative groups are selected by grouping companies by group and screening them based on free float market capitalization, comprehensively considering factors such as ▲business diversification ▲financial soundness ▲management capability ▲growth prospects. Subsidiaries of the respective representative groups are included in the investment targets. The basic portfolio is constructed based on free float market capitalization, but investment weights are adjusted and managed with advice from Nippon Life India Asset Management, a local Indian asset management company. Nippon Life India Asset Management, with 28 years of experience, is one of India’s largest asset management companies and ranks 4th in the industry by assets under management (AUM).

Song Hanna, head of the Overseas Investment Management Department at Korea Investment Trust Management, explained, “India is emerging as an attractive production base and consumer market replacing China through global supply chain restructuring and high economic growth,” adding, “India’s government economic development policies and advantages in human resources have propelled its economic growth, firmly maintaining its position as the world’s 5th largest economy by nominal GDP in 2023.” She also said, “The Indian stock market has risen this year, establishing itself as the world’s 5th largest stock market,” and “Since 2014, it has nearly doubled compared to global stock markets, proving its market potential.”

She continued, “The five major representative groups will maintain their leading positions in India’s future core industries due to corporate profit polarization and a winner-takes-all structure among top companies,” and added, “The 5 Major Representative Groups Fund is recommended as a useful alternative for investors seeking returns from competitive Indian growth stocks by concentrating investments in India’s market growth and core industries.”

Meanwhile, the ‘Korea Investment India 5 Major Representative Groups Fund’ will be available for subscription through Korea Investment & Securities starting December 22. As a performance dividend-type product, principal loss may occur depending on management results, so caution is advised when investing.

This content was produced with the assistance of AI translation services.