India Unit Trusts funds

Gloucester85

I was considering taking a punt a putting a small sum of money into an Indian Unit trust accumulator funds that paid an annual dividend. I wanted one that was UK based and not an offshore Fund. Ones that I was considering were Jupiter India. Fidelity India Focus, Neptune India and Franklin India.Do they all fall under this category and which one has the best track record.

bowlhead99

Gloucester85 wrote: »

I was considering taking a punt a putting a small sum of money into an Indian Unit trust accumulator funds that paid an annual dividend.

They will all earn dividends from their investee companies. None of them will offer an 'accumulator' class that pays you an annual dividend because an accumulator class is specifically designed for people who do not want to receive dividends from the fund. Instead they retain the net income in the fund, and reinvest it.

Whereas if what you want is a distributing, income class of the fund, then that will not be accumulating the net income for you, it will be paying it out to you. You could always manually reinvest that income, if the income exceeds the minimum investment size allowed by the fund through your investment platform of choice.

I wanted one that was UK based and not an offshore Fund. Ones that I was considering were Jupiter India. Fidelity India Focus, Neptune India and Franklin India.Do they all fall under this category and which one has the best track record.

You can determine all that for yourself by looking at the factsheets and track record. You would have to define for yourself what you mean by "best" track record as different people have different objectives. Though as it is only a punt, for a small amount of money, I don't suppose it matters too much which you pick.

ColdIron

Most people would invest in India for long term growth and not for any dividends it may produce, which are not presently high. Many would do it as part of a wider Emerging Market or Asia Pacific fund which itself would only be a small part of a broader developed world portfolio. Putting all your cash into an India only fund for a short term punt would probably not be the most astute move you ever made

aroominyork

On the issue of India: I bought Aberdeen New India Investment Trust (ANII) during the last six months. It has not done well since then but that doesn’t concern me; I think it’s fundamentally a sound IT. But searching around today I came across India Capital Growth Fund (IGC) which has outperformed ANII over recent years. More importantly, it focuses on SMEs which, if well chosen, I think have more scope for growth over the coming years as a result of Modi’s reforms so I am thinking of switching my ANII holding to IGC.

IGC is part of Ocean Dial Asset Management, a small/niche (boutique?) firm which was recently acquired by Aventus Capital, an Indian financial services firm. So my question is about how to assess the risk or uncertainty that adds? I know it’s a very open question but I’m hoping more experienced members might help me think this through clearly. Thanks.