Monday, September 18, 2017

NFONEST

September 2017

It is a common practice across the mutual fund companies to launch NFOs (New Fund Offers) when markets are doing well. As more and more people invest only when markets perform well, automatically it becomes an opportunity for mutual fund companies to come out with new products. In the last few months of bull-run many NFOs have been launched out of which most of them are close ended funds. Hardly there is any company left which has not launched an NFO. In addition, the number of NFOs which were launched in the bear phase of 2009-2013 equals the number of NFOs launched in the last year.

NFOs of various hues adorn the September 2017 NFONEST.

ICICI Prudential Sensex Index Fund
Opens: September 14, 2017
Closes: September 18, 2017

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Sensex Index Fund, an open ended index fund. The objective of the fund is to invest in companies whose securities are included in the S&P BSE Sensex Index and subject to tracking errors, to endeavour to achieve the returns of the above index as closely as possible. This would be done by investing in all the stocks comprising the S&P BSE Sensex Index in approximately the same weightage that they represent in S&P BSE Sensex Index. The fund will not seek to outperform the S&P BSE Sensex Index or to underperform it. The fund will invest 70%-100% of its assets in debt instruments including government securities and invest up to 30% of assets in money market instruments with low to medium risk profile. The fund will not have any exposure to derivatives and if the fund decides to invest in securitized debt (Single loan and / or Pool Loan Securitized debt), it could be up to 25% of the corpus of the Plan. Benchmark Index for the fund is S&P BSE Sensex Index. The fund manager is Kayzad Eghlim.

Sundaram Long Term Micro Cap Tax Advantage Fund Series VI
Opens: June 23, 2017
Closes: September 22, 2017

Sundaram Mutual Fund has launched a new fund named as Sundaram Long Term Micro Cap Tax Advantage Fund Series VI, a 10 year close ended equity linked savings scheme. The tenure of the fund is 10 years from the date of allotment of units. The investment objective of the fund is to generate capital appreciation over a period of ten years by predominantly investing in equity and equity related instruments of companies that can be termed as micro-cap. For the purpose of investment by the fund Micro cap stock is defined as one whose market cap is equal to or lower than the 301st stock by market cap (after sorting the securities in the descending order of market capaitalization) on the National Stock Exchange of India at the time of investment. The fund will allocate 65%-100% of assets in equity and equity related securities of companies of micro-caps as defined in the objective, invest up to 35%-100% of assets in other equity and equity related securities with high risk profile and invest up to 20% of assets in fixed income and money market securities with low to medium risk profile. The performance of the fund will be benchmarked against Nifty Small Cap 100 Index. The fund will be managed by S Krishnakumar & Dwijendra Srivastava.

SBI Dual Advantage Fund –Series XXIV
Opens: September 11, 2017
Closes: September 25, 2017

SBI Mutual Fund has unveiled a new fund named as SBI Dual Advantage Fund - Series XXIV, a close ended hybrid fund. The tenure of the fund is 1100 days from the date of allotment. The primary investment objective of the fund is to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the fund. The secondary objective is to generate capital appreciation by investing a portion of the fund’s corpus in equity and equity related instruments. The fund will invest 55%-95% of assets in debt and debt related instruments, invest up to 10% of assets in money market instruments with low to medium risk profile and invest 5%-35% of assets in equity and equity related instruments including derivatives with high risk profile. Benchmark Index for the fund is CRISIL MIP Blended Fund Index. Rajeev Radhakrishnan shall manage debt portion and Ruchit Mehta shall manage investments in equity and equity related instruments of the fund.

UTI Focussed Equity Fund –Series IV
Opens: September 13, 2017
Closes: September 25, 2017

UTI Mutual Fund has launched the UTI Focussed Equity Fund, an open ended growth fund. The investment objective of the fund is to generate long term capital appreciation by investing predominantly in equity and equity related securities of listed companies. The fund is benchmarked against S&P BSE 200 and the fund managers are Anoop Bhaskar / Lalit Nambiar.

BNP Paribas Focused 25 Equity Fund
Opens: September 15, 2017
Closes: September 29, 2017

BNP Paribas Mutual Fund has launched the BNP Paribas Focused 25 Equity Fund, an open ended growth fund. The investment objective of the fund is to generate long-term capital growth by investing in a concentrated portfolio of equity and equity related instruments of up to 25 companies and the balance in debt securities and money market instruments. The fund is benchmarked against Nifty 100 and the fund managers are Mr. Abhijeet Dey and Mr. Karthikraj Lakshmanan.