Schroders has launched its first UK-domiciled Indian equities fund in partnership with India's Axis Asset Management.
The Schroder India Equity fund was launched on 7 June after "significant client demand" and will be run by Schroders' Asian investment team alongside Axis, a company in which Schroders owns a 25% stake.
The firm said the fund will use a bottom-up, fundamental investment approach to invest in large-, mid- and small-cap Indian companies, or those that have a substantial business exposure to India. It will be, Schroders added, "a concentrated portfolio of our best ideas".
Schroders has a team on the ground in India, which gives a distinct advantage in this rapidly emerging market."
The Indian economic growth story is "impossible to ignore," said Jigar Gandhi, investment director for the Schroder India Equity fund, "with the economy set to become one of the world's largest over the coming months."
Gandhi added: "Schroders has a team on the ground in India, which gives a distinct advantage in this rapidly emerging market.
"We are confident that, in partnership with Axis, this fund will provide Schroders' clients with the opportunity to benefit from robust returns generated from investing in this exciting and fast-growing market."
Schroders entered into a joint venture with Axis in 2012. Axis provides investors with a unique local presence and investment insight, Schroders added.
Phil Middleton, head of Schroders' UK intermediary business, said the firm has "significant experience of investing in India" via its Schroder International Selection Fund (ISF) Indian Equity fund, which it has run since 2006.
"We are now able to offer our clients access to a UK-domiciled fund managed by a first-class team based in India," Middleton (pictured below left) added.
Schroders said the fund would provide UK investors with exposure to one of the world's fastest-growing major economies. It aims to benefit from India's structural reforms and the country's rapidly expanding economy.
Averaging growth of 6.2% per annum since 1951, India is set to overtake the US in terms of GDP ranking by 2050, according to IMF figures.
A version of this article was first published by Investment Week, a sister title to International Investment