Monday, January 16, 2012

NFO NEST
January 2012

NFOs at an eight-year low in 2011


The poor state of the stock market and the capital market regulator's tough stance against launch of a new fund have hit the launch of equity new fund offers (NFOs). Equity NFOs have hit an eight-year-low in 2011. Only 10 new schemes have been launched in 2011, garnering merely Rs 612 crore against Rs 4,659 crore in 2010. In a poor market it is not possible to raise money by launching NFOs. In 2011, domestic benchmark indices have seen erosion of a fifth of their values. All categories of equity funds, except those in fast moving consumer goods, have lost investors' wealth. In some cases, the losses have been 30% over the year. Further, the reduction of the time period given to launches, of 15 days, is another reason for the dwindling number of NFOs. The regulator has informally told the AMCs to collect minimum Rs. 10 crore in equity NFOs and Rs 20 crore in non-equity NFOs. Only new players who want to build up their product kitty could come up with new schemes. Existing players would prefer to continue with merging schemes to escape any duplication and overlapping of investment mandates.


In line with the bleak scenario for NFOs in 2011, the January 2012 NFO NEST unveils half a dozen NFOs of which only one is an equity fund.


ICICI Prudential Capital Protection-oriented Fund II – Series 6
Opens: January 4, 2012
Closes: January 17, 2012


ICICI Prudential Capital Protection Oriented Fund – Series II – 24 Months Plan is a close ended Capital Protection Oriented Fund. The objective of investment in the Fund is to try to protect capital by investing a portion of the portfolio in good quality debt securities and money market instruments (88%–100%) and also to provide capital appreciation by investing the balance in equity and equity related securities (0% – 12%). The performance of the fund will be benchmarked against CRISIL MIP Blended Index. Chaitanya Pande and Mrinal Singh will be the Fund Manager(s) of the fund. The former will take care of debt investment and the latter of equity investment.


Axis Constant Maturity 10 Year Fund
Opens: January 10, 2012
Closes: January 19, 2012


Axis Mutual Fund has launched a new fund named as Axis Constant Maturity 10 Year Fund, an open ended gilt fund. The investment objective of the fund is to generate returns similar to that of 10 year government bonds. The fund would allocate up to 100% of assets in Government Securities, Treasury Bills, Repo & CBLO with low to medium risk profile. The fund's performance will be benchmarked against Crisil 10-year Gilt Index. The fund will be managed by Mr. Sivakumar.


DWS Hybrid FTF Series 4
Opens: January 9, 2012
Closes: January 23, 2012


Deutsche Mutual Fund launched a new close ended debt fund “DWS Hybrid Fixed Term Fund - Series 4”, with maturity time of 3 years. The asset allocation of the fund will be in such a way that the objective of the fund to generate income will be met, through investments in high quality fixed income securities and capital appreciation by investing in equity and equity related instruments. Hence, the fund will allocate 75 to 100% of assets in domestic debt instruments including government securities, 0 to 25% in money market instruments, and 0 to 20% of assets in equity and equity related securities. The performance of the fund will be standardized against Crisil MIP Blended Fund Index. Aniket Inamdar and Kumaresh Ramkrishnan will be the Fund Manager(s) of the fund, in which the former will manage the equity portion whereas the latter will manage the debt portion.


ICICI Prudential Multiple Yield Fund – Series 2 (Plan D)
Opens: January 19, 2012
Closes: January 30, 2012


ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Multiple Yield Fund - Series 2 - Plan D, a close ended income fund. The tenure of the plan is 1100 days. The primary objective of the fund is to seek to generate returns by investing in a portfolio of fixed income securities/ debt instruments. The secondary objective of the fund is to generate long term capital appreciation by investing a portion of the fund's assets in equity and equity related instruments. The fund will allocate 65% to 100% of assets in short term and medium term debt securities / debt instruments and securitized debt with low to medium risk profile. It would allocate up to 10% of assets in money market instruments with low to medium risk profile. On the flip side it would allocate up to 35% of the asset in equity or equity related securities with medium to high risk profile. The benchmark index for the fund will be Crisil MIP Blended Index. Debt portion of the fund will be managed by Chaitanya Pande and equity portion of the fund will be managed by Mr. Mrinal Singh. The investments of the fund in ADR/GDR and other foreign securities will be handled by Rajat Chandak.


Morgan Stanley Multi Asset Fund
Opens: January 17, 2012
Closes: January 31, 2012


Morgan Stanley Mutual Fund has launched a new open-ended debt fund named Morgan Stanley Multi Asset Fund. Plan A of the fund seeks to generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure to equity and equity related instruments. The fund will invest 80%-100% in Debt and Money Market instruments with Low to Medium risk profile and 0%-20% in Equity and Equity related instrument with Medium to High risk profile. 80% of the fund will be benchmarked against CRISIL Composite Bond Fund Index, and 20% against S&P CNX Nifty and Domestic Price of Gold. Plan B of the fund seeks to generate regular income through investments in debt & money market instruments, along with capital appreciation through limited exposure to equity and equity related instruments and provide diversiļ¬cation by investing in Gold ETFs. The fund will invest 65%-100% in Debt and Money Market instruments with Low to Medium risk profile and 0%-35% in Equity & Equity related instruments and Gold Exchange Traded. 70% of the fund will be benchmarked against CRISIL Composite Bond Fund Index, 15% against S&P CNX Nifty, 15% against Domestic Price of Gold. The fund will be managed by Mr. Ritesh Jain and Mr. Jayesh Gandhi.


SBI Tax Advantage Fund – Series II
Opens: December 22, 2011
Closes: March 21, 2012


SBI Mutual Fund has launched a new fund named as SBI Tax Advantage Fund-Series-II, a 10 year close ended Equity Linked Savings Scheme. The investment objective of the fund is to generate capital appreciation over a period of ten years by investing predominantly in equity and equity-related instruments of companies across large, mid and small market capitalization, along with income tax benefit. The fund would allocate 80-100% of assets in equity and equity related instruments. The fund shall also invest up to 20% in debt and money market securities with low to medium risk profile. The performance of the fund will be standardized against BSE 100 Index and Jayesh Shroff will be the Fund Manager of the fund.


ICICI Prudential US Bluechip Equity, Axis Banking Debt Fund, Axis Focus 25 Fund, IDBI India Top 100 Equity Fund, IDBI Gold Fund, and Canara Robeco Gold ETF are expected to be launched in the coming months.

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