The significance of this fund is, it will not only invest in Indian Stocks but also stocks of other emerging markets such as Argentina, Brazil, Russia, China and East Europe. The fund will have both BSE 200 and MSCI Emerging Market Index as its benchmark.
One should invest some sum in this fund as well as you see India has been an underperformer in 2006 compared to China and India is also a very expensive emerging market at P/E of 18. In such situations, these funds will reduce exposure in India and move their money to other lucrative markets such as Brazil.
Stay Tuned, I’ll review the fund and post more views on it when it will be launched [ maybe Q1-2007].