Public Mutual Bhd said it will be launching the Public Islamic Enterprises Equity Fund tomorrow (March 18) for investors with an aggressive risk-reward appetite.

The new fund offers investors the opportunity to achieve potential capital growth by focusing on larger capitalised companies with established track records, it said in a statement.

“The prospects for large corporations are expected to remain resilient as they are better positioned to withstand challenging economic conditions owing to their economies of scale, stronger financial resources, size and established market shares,” said Public Mutual CEO Yeoh Kim Hong.

“This fund is suitable for medium to long-term investors with aggressive risk-reward temperaments.”

The Islamic equity fund will invest 75% to 98% of its net asset value (NAV) in the 50 largest shariah-compliant companies in terms of market capitalisation (at the point of purchase) listed on Bursa Malaysia.

The rest of its NAV will be invested in sukuk and Islamic liquid assets, including Islamic money market instruments, Islamic investment accounts and Islamic deposits.

The initial issue price is 25 sen per unit during the 21-day offer period from March 18 to April 7, Public Mutual said. The minimum initial investment is RM1,000 and the minimum additional investment is RM100.

During the offer period, there will be a special promotional sales charge of as low as 5% of the initial issue price.

With a foreign market exposure of 25% of its NAV, the Islamic equity fund offers investors the opportunity to gain exposure to a wider range of stocks and capitalise on the growth potential of large cap companies in foreign markets such as South Korea, China, Hong Kong, Taiwan, Japan, Singapore, the Philippines, Thailand and Indonesia, said Public Mutual.