Monday, January 15, 2018

NFONEST
January 2018

Fundraising by new offers in the equity segment of the mutual fund industry hit a 10-year high of Rs 22,333 crore in 2017. The average fund raised per new fund offer, at nearly Rs 380 crore, was also the highest since 2008. Equity NFOs’ contribution to overall equity mutual fund sales is on the rise. Interestingly, of the total inflows in the equity segment during 2017, NFOs contributed 14.7% — a significant jump from 4.6% seen in 2016. This essentially means that flows through NFOs are gaining momentum and there is an available market for the success of such products — which were almost on the brink of extinction in 2011-12. Last year saw a strong comeback by equity NFOs. Though in absolute terms, their numbers were lesser at 59 compared with what was seen in 2014 at 75, the quantum of money was high, which led to a substantial funds flow through this route. 

NFOs of various hues adorn the January 2018 NFONEST.

Mahindra Unnati Emerging Business Yojana Midcap Fund
Opens: January 8, 2018
Closes: January 22, 2018

Mahindra Mutual Fund has launched the Mahindra Unnati Business Yojana Midcap Fund. 65% of the investment will be made in mid-cap emerging companies and the remaining 35% into a mix of large-cap and small-cap emerging companies. The fund is benchmarked against the S&P BSE Midcap Index. The fund manager is Mr.Ratish Varier.

DSP Blackrock Arbitrage Fund
Opens: January 15, 2018
Closes: January 22, 2018

DSP Blackrock Mutual Fund has launched the DSP Blackrock Arbitrage Fund. The investment objective of the scheme is to generate income through arbitrage opportunities between cash and derivative market and arbitrage opportunities within the derivative market. Investments may also be made in debt and money market instruments. The fund is benchmarked against the CRISIL Liquid Fund Index. The fund manager is Mr. Mayur Patel.

SBI Dual Advantage Fund – Series XXVI
Opens: January 10, 2018
Closes: January 24, 2018

SBI Dual Advantage Fund is a close ended hybrid scheme. The primary investment objective of the scheme is to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the scheme. The secondary objective is to generate capital appreciation by investing a portion of the scheme corpus in equity and equity related instruments. The product is suitable for investors who are seeking income and capital appreciation by investing primarily in debt and money market instruments for regular returns and equity and equity related instruments for capital appreciation. The fund is benchmarked against the CRISIL MIP Blended Fund Index. The fund managers are Mr. Rajeev Radhakrishnan and Mr. Ruchit Mehta.

SBI Long Term Advantage Fund – Series 5
Opens: December 21, 2017
Closes: March 20, 2018

SBI Mutual Fund has launched the SBI Long Term Advantage Fund – Series 5. 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 instruments of companies along with income tax benefit. The fund is benchmarked against the S&P BSE 500 Index. The Fund Manager is Mr. R. Srinivasan.

UTI Long Term Advantage Fund – Series VII
Opens: December 21, 2017
Closes: March 21, 2018

UTI Mutual Fund has launched a new fund named as UTI Long Term Advantage Fund - Series VII, a 10 year close-ended equity linked savings scheme. 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 instruments of companies along with income tax benefit. The performance of the scheme will be benchmarked against the S&P BSE 200 Index. The scheme will be managed by Mr. Sachin Trivedi.

ICICI Prudential Long Term Wealth Enhancement Fund
Opens: December 22, 2017
Closes: March 21, 2018

ICICI Prudential Mutual Fund has launched the ICICI Prudential Long Term Wealth Enhancement Fund. The scheme is a three year close ended equity linked savings scheme that seeks generate long-term capital appreciation to unit-holders from a portfolio that is invested predominantly in equity and equity related securities of large capitalization companies and emerging mid cap companies along with income tax benefit. This product is suitable for investors who are seeking long term wealth creation. The fund is benchmarked against the Nifty Large Midcap 250 Index. The Fund Managers are Mr. Sankaran Naren and Mr. Rajat Chandak.

Sundaram Long Term Advantage Fund – Series III
Opens: December 27, 2017
Closes: March 27, 2018

Sundaram Mutual Fund has launched an ELSS fund, Sundaram Long Term Advantage Fund – Series III. The investment objective is to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related instruments of companies along with income tax benefit. The fund is benchmarked against the S&P BSE 500. The Fund Manager is Mr. S. Krishna Kumar.


UTI Nifty Next 50 Index Fund, Sundaram Value Fund Series IX & XII, ICICI Prudential Mutual Fund – ICICI Prudential S&P BSE 500 ETF and Sundaram Emerging Small Cap Series 1I to IV are expected to be launched in the coming months.