Monday, May 18, 2009

NFO Nest
(May 2009)


Debt Fund domination continues…

With security at the top of the agenda of every investor, the debt flavour of NFOs is being maintained. The latest market euphoria, if sustained, could alter the existing equation and equity funds could rise like phoenix from the ashes…

The following funds find their place in the NFO Nest in May, 2009.

Morgan Stanley Short-term and Active Bond Fund
Opens: 12 May, 2009
Closes: 20/25 May, 2009
The launch of Morgan Stanley Short-term bond fund and Morgan Stanley Active bond fund marked the debut of Morgan Stanley Mutual Fund’s fixed income boutique in India and continues the firm’s expansion in India’s investment management industry. The investment objective of Morgan Stanley Short Term Bond Fund is to generate income from a diversified portfolio of short to medium term debt and money market securities and will be benchmarked against the CRISIL Short-Term Bond Fund Index. The Morgan Stanley Active Bond Fund will seek to generate optimal returns through active management of a portfolio consisting of debt and money market securities. It will be benchmarked against the CRISIL Composite Bond Fund Index. Interest rates are at a cyclical downturn on the back of global economic slowdown and low inflation. Given this environment, Morgan Stanley Short Term Bond Fund will be well positioned to take advantage of any fall in short term interest rates. Morgan Stanley Active Bond Fund will be actively managed to take advantage of any fall in the overall interest rate structure. A flexible investment strategy is best positioned to generate an optimal risk adjusted return, given the market opportunities.
Canara Robeco Dynamic Bond Fund
Opens: 4 May, 2009
Closes: 20 May, 2009

Canera Robeco Dynamic Bond Fund is an open-ended debt fund that seeks to generate income from a portfolio of debt and money market securities. The scheme will invest upto 0-70% in government of India and corporate debt securities including securitised debt and excluding Debt/GOI securities with initial maturity of less than one year and Treasury bills. The scheme will invest 30%-100% in money market instruments. Investment by the fund in securitised debt will not normally exceed 50% of the net assets at the time of investment. Investment by the fund in derivative instruments may be done for hedging and portfolio balancing up to 30% of the net assets at the time of investment. The fund will be benchmarked against the CRISIL Composite Bond Fund Index. Its primary objective is to actively manage the interest rate risk of the portfolio. The fund endeavours to trade duration to generate alpha for its investors by adopting a proactive strategy of encashing on interest rate fluctuations under any market condition. Thus, the fund will benefit from the opportunities provided by the inefficiencies and volatility in the fixed income market.

Tata SMART Investment Plan-1
Opens: 27 April, 2009
Closes: 1 June, 2009
Tata Smart Investment Plan-1 is a 36 months closed-ended hybrid scheme that seeks to generate returns by investing systematically in equity and equity related instruments. The scheme aims at investing 0% to 100% in equity and equity related instruments and 0% to 100% in debt, money market and securitized debt instruments during the first twelve months and twenty four months from the date of allotment in the case of Scheme A and Scheme B respectively. After the above-mentioned period in the respective schemes, investment will be 65% to 100% in equity and equity related instruments and 0% to 35% in debt, money market and securitized debt instruments. The performance of the scheme will be measured against CRISIL Liquid Fund Index and the BSE Sensex based on the proportionate weightage of equity and debt in the scheme’s portfolio.

IDFC Nifty Fund, Raliance Gold Savings Fund Scheme, Baroda Pioneer PSU Bond Fund, Shinsei Industry Leader’s Fund, Sahara Daily Fund and DSP Blackrock World Energy Fund are expected to be launched in the coming months.

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