Monday, November 20, 2017

NFONEST

November 2017

Asset mobilisation through the new fund offer (NFO) route has hit a nine-year high in 2017. The mutual fund industry launched a total of 47 NFOs during the first 10 months of the year, to mop up a cumulative Rs 13,500 crore. The average NFO size, too, has increased to a nine-year high of Rs 288 crore. The amount raised this year is still a fraction of what it used to be during the bull run of 2005-08. The annual mop-up during those four years was an average Rs 28,000 crore. Currently, investors prefer existing funds with a reasonable performance track record over new scheme launches and the trend is expected to continue. It is quite evident, as equity schemes got inflows of Rs 1.16 lakh crore so far in 2017, of which equity NFOs contributed a mere 12 per cent. Fund houses that do not have existing schemes in any of the product categories will only launch NFOs. 

NFOs of various hues adorn the November 2017 NFONEST.

HDFC Housing Opportunities Fund – Series 1
Opens: November 16, 2017
Closes: November 30, 2017

HDFC Mutual Fund has launched HDFC Housing Opportunities Fund - Series 1. The close-ended thematic equity fund will allocate at least 80 percent of its assets in equity and equity related instruments of entities engaged in and/or expected to benefit from the growth in housing and its allied business activities. The fund house will also invest up to 20 percent in equity shares of companies other than in housing and its allied business activities or in debt and money market instruments. The scheme also has the provision to invest up to 10 percent in units issued by Real Estate Investment Trusts or REITs & Infrastructure Investment Trusts InvITs. Though the underlying theme is housing, the fund is not a sectoral fund as it does not play on just one sector. The fund will invest in multiple sectors such as banks, NBFCs, engineering companies, steel companies and other consumer discretionary companies. In addition, the close end structure ensures that investors will remain invested at least for three years. The fund is benchmarked against India Housing and Allied Businesses Index. The Fund Managers are Mr. Srinivas Rao Ravuri and Mr. Rakesh Vyas.

DSP BlackRock A.C.E Fund – Series 1
Opens: November 17, 2017
Closes: December 1, 2017

DSP BlackRock Mutual Fund has launched DSP BlackRock ACE Fund (Analyst’s Conviction Equalized) Series 1. The 37-month close-ended multi-cap fund will allocate at least 80 percent of its asset in equity and equity-related instruments including derivatives, while up to 20 percent will be deployed in debt and money market instruments. The scheme portfolio will consist of 45-55 high conviction stocks across sectors and market capitalisations. The scheme will avoid sector and stock allocation bias. It will do so by having sectoral allocation in line with NIFTY 500 and equal weights for all stocks within a sector. Stock weights will be rebalanced quarterly and stock inclusions/exclusions will be done real-time. The Benchmark index of the fund is Nifty 500 Index. The Fund Manager is M. Suryanarayanan.

UTI Focused Fund – Series V
Opens: November 20, 2017
Closes: December 4, 2017

UTI Mutual Fund has launched UTI Focused Equity Fund Series V (1102 days), a closed ended equity scheme which primarily aims to generate long term capital appreciation by investing predominantly in equity and equity related securities of listed companies. The scheme will without any capitalization bias endeavor to invest in either growth stocks or value stocks or both. The scheme will normally hold up to 30 stocks in the portfolio. The Benchmark index of the fund is S&P BSE 100 Index. The Fund Manager is Mr. Vetri Subramaniam.

BOI AXA Midcap Tax Fund – Series 1
Opens: November 10, 2017
Closes: February 9, 2018

BOI AXA Mutual Fund has launched the BOI AXA Mid Cap Tax Fund Series 1, a close ended ELSS scheme with a tenure of 3650 days. The investment objective of the scheme is to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related securities of midcap companies along with income tax benefit. The fund is benchmarked against Nifty Free Float Midcap 100. The Fund Manager is Mr. Alok Singh.

ICICI Prudential Multiple Yield Fund – Series 14, Sundaram Capital Protection Oriented Fund – Series 19 & 20, ICICI Prudential Growth Fund – Series 9 to 11, ICICI Prudential Capital Protection Oriented Fund – Series XIII, SBI Long Term Advantage Fund – Series V & VI and ICICI Prudential Long Term Wealth Enhancement Fund are expected to be launched in the coming months.