Bangalore, Nov 21 (UNI) Indian investor lives in a globalised world but invests locally and to help him harness the world market ING Investment Management is offering its Global Real Estate Fund, the first open ended real estate fund.
Briefing newspersons on the advantages of investing in this fund, promoted by the world's largest financing institution, ING Investment Management Managing Director and CEO Vineet K Vohra said the fund would open up a new 'asset class' for Indian investors that offers returns better than fixed income product but carries lower volatility than an equity fund.
''The stock market in India, which had been in an upward growth recently, is not driven by the country. Nearly 80 per cent of investments has come from abroad this year. You cannot expect them to be patriotic. To minimise the risks of equity funds, investor should look at the real estate funds like the one we are offering,'' he advocated.
The CEO said the ING was bringing to table real estate as a financial opportunity and the product diversifies across 21 countries and invests in commercial properties such as offices, shopping malls, healthcare facilities, hotels and apartments.
Fourty to 50 per cent of the investments out of this fund would be made in APAC countries which was witnessing rapid growth in the real estate sector.
''We will not be affected by the subprime factor that has hit the US market, as we invest purely in commercial properties. We invest in securities of the top real estate companies that have performed exceptionally well,'' he said.
The fund would act as a feeder fund for the Cayman registered real estate fund ING Global Real Estate, which is sub-advised by ING Clarion Real Estate Securities.
The NFO offer opened yesterday would close on December 14.