True Beacon launches new fund

Asset management company True Beacon has launched a new alternative investment fund, which will invest in equity and tax-free bonds, its co-founder Nikhil Kamath said on Thursday. This is the second fund launched by the company. True Beacon, earlier this year, launched GIFT City's first global hedge fund to cater to international investors. The new fund, a Category III AIF True Beacon Two, is a multi-asset fund that will consists of dynamic equity and a tax-free fixed income component, Kamath said.

The fund is aiming to deliver low-risk stable returns by dynamically rebalancing between asset classes, he said. "The ideal split will be 65:35 -- 65 per cent to equity and 35 per cent to tax free bonds on an average over the long term. Tax-free bonds are the safest asset class in India. These instruments are very safe and stable," he added. He, further, said the new fund will be ideal for new investors who are looking to scale equity exposure.

The fund will invest in the country's largest 200 companies to capture value appreciation combined with a sovereign-backed debt component to hedge against inflation and volatility. "We are aiming to deliver an annual return of 9-10 per cent to investors through the new fund," he added. True Beacon was established in 2019 by Kamath, who is also the co-founder of stock broking platform Zerodha.

It is a disruptive asset management company with a zero-standing fee model, wherein only the gains are charged at 10 per cent, at the end of the financial year.