Invest in nippon india taiwan equity fund- NFO review
The economy of any country in the world performs differently at different times, and each country has its uniqueness. The expertise of each country is different from others.
For example, China is known for manufacturing because there is cost-effective labor than in other countries. Therefore, in the world, many companies depend on the manufacturing of their products in China. Similarly, some countries specialize in health care, electronics, innovation.
In this condition, having equity funds from countries like these in your portfolio can give you good returns. Therefore, in today’s article, I will tell you the benefits of investing in the Nippon India Taiwan equity fund.
Table of content
- Global Market
- Reason to Invest in Nippon India Taiwan equity fund
- The equity market in Taiwan
You must have invested or know many types of equity funds, in which China and the USA come as your 1st priority, but today I will explain about Taiwan Equity Fund, in which you will be able to invest and earn good profits for yourself.
- Nippon India has brought Taiwan Equality Fund to Nippon India Mutual Fund. In which you can get many benefits.
- Taiwan is a newly developed country with a low inflation rate, surplus consistency trade, and huge foreign reserves with a low unemployment rate.
- It means the situation in Taiwan is fundamentally strong and favorable. Taiwan is the second-largest country in the MSCI-EM country weight index (14.68%).
Reason to Invest in Nippon India Taiwan equity fund
Taiwan dominates semiconductor devices in the global market, and semiconductors are the brains of modern electronics, as semiconductors are used in modern electronic devices. The technology of the future such as artificial intelligence, quantum computing, and advanced wireless network.
- Today the demand for artificial intelligence and tech base products is increasing, so there is a possibility of huge growth in the demand for semiconductors.
- Taiwan’s semiconductor industry holds a leading market share in IC foundry, packaging, and testing services and is second only to us in terms of design services and broader market share.
- Taiwan is improving its global and regional connections through new initiatives such as the New South Bound Policy.
The equity market in Taiwan
If you look at the equity market of Taiwan, here are the stock earnings and attractive valuations.
- If we look at the Taiex-PE ratio or correlation with SMPBSC 500, it is 59, which means there is the best chance of diversification.
- If the correlation is perfectly negative means one market is performing, and the other is not performing. If the correlation is perfectly positive, then both the markets are performing well or not.
- As I mentioned, their correlation is .59 with SMPBSC 500, so a fund investing in a company listed in Taiwan will provide good diversification to your portfolio.
- High liquidity and high dividend yield make Taiwan’s investment market attractive.
- If you look at the past performance of Taiex, Taiex has performed better as compared to SMP BSE 500 from 2011 to 2021.
- The average return SMP BSE 500 for the last 10 years is 12.30%, and TAIEX is 12.40 %.
Therefore, having Taiwan equity Fund along with Domestic and Internet National Fund in your equity fund will be the best diversification for your portfolio.
- The fund will invest in industry leaders on a long horizon basis.
- Tend to hold less than 40 holdings with a high conviction
- bottom-up approach layered with flexible cash position to minimize drawdown
- ESG integration procedures for responsible investment.
- No more than 10% investment will be allowed in any single stock so that the risk does not increase too much.
- the fund will follow a multi-cap investment strategy
- The investment portfolio will be a mix of growth and value stocks
- focus will be on new technology trends, meaning the focus will be on new-age business.
- Nippon India will advise Taiwan’s one of the best AMC Cathay Asset to follow Taiwan Equity Fund AMC.
Note – Cathay Asset AMC is one of Taiwan’s Largest AMC with 137 Investment Professionals with 14 Years of Industry Experience.
Nippon India Taiwan Equity Fund is an open-ended equity fund whose NFO will be open from 22 November 2021 to 6 December 2021.
Taiwan capitalization-weighted stock index(TAIEX)
1 % if redeemed or switched out on or before completion of 3 months from the date of allotment of units
Minimum Application amount
500 rs & in multiples of 1rs thereafter
Plan and option
growth plan (growth option) income distribution cum capital withdrawal plan (payout option and reinvestment option)
Taiwan’s leadership in the semiconductor, electronics industry, rapid growth in the technology industry, and Taiwan plays a critical role in the supply chain, so Nippon India Taiwan Equity Fund in the investment portfolio will keep the portfolio well-diversified.
If you want to add any other fund to your portfolio, then Nippon India Taiwan Equity Fund will be a good choice for you.
We hope you liked this information, if you have any doubts, then ask by commenting below.