Fortune Wealth Management to launch an index fund; will tap HNIs

L N Revathy Coimbatore | Updated on November 13, 2019

Fortune Wealth Management Co India (P) Ltd is set to launch an index fund in the next couple of weeks. The company is planning to tap HNIs (High Networth Individuals) initially for investing in the index fund.

Jose C Abraham, Managing Director, Fortune, told BusinessLine that it would be difficult for big funds to time the market, whereas broking firms like Fortune could, using technical analysis.

“We conducted a detailed study, used technical analysis and found that investment in index funds helped add another 3-4 per cent to the overall returns. A look at the performance of PMS (Portfolio Management Services) and mutual funds (MFs) over the last two years shows that most have under-performed.”

While the Sensex appreciated by 16 per cent in 2018-19, Bank Nifty appreciated 30 per cent during this period.

“Going forward, we expect returns from index to be more stable than that from bank,” Abraham said.

While Abraham is confident about better returns from investment in index, he stressed the need for continuous education amongst the investor community about investment opportunities. The firm is in talks with the BSE and the NSE to conduct investor education programmes.

Reiterating the need for investing in such funds, he said: “Bank interest rates are on a downward slide. FDs will not fetch adequate returns to beat inflation. The investor should explore other investment opportunities.”

Published on November 13, 2019

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