Monday, January 19, 2015

NFO NEST
January 2015

The NFO comeback

From a mere 10 equity-oriented NFOs in 2012 and 22 in 2013, 2014 saw 48 NFOs. Inspite of the fact that the money collected was just a fraction of what the NFOs had collected in the years 2005 to 2007, the number of NFOs launched in 2014 was among the highest, on a yearly basis, in the past decade. Most of the NFOs launched were of three-to-five-year period closed-end funds. NFOs of various hues continue to flood the market in the January 2015 NFONEST.

BOI AXA Capital Protection Oriented Fund – Series 3

Opens: January 7, 2015
Closes: January 21, 2015

BOI AXA Mutual Fund has launched a new fund as BOI AXA Capital Protection Oriented Fund – Series 3, a close-ended capital protection oriented fund. The tenure of the fund will be 41 months from the date of allotment. The investment objective of the fund is to generate income by investing in a portfolio of fixed income and money market instruments maturing on or before the maturity date of the fund. The fund will invest 75%-100% of assets in debt and money market securities with low to medium risk profile and invest up to 25% of assets in equity and equity related instruments with high risk profile. The benchmark index for the fund is CRISIL MIP Blended Fund Index. The fund managers will be Alok Singh and Surabh Kataria.

Baroda Pioneer Credit Opportunities Fund

Opens: January 8, 2015
Closes: January 21, 2015

Baroda Pioneer Mutual Fund has launched Baroda Pioneer Credit Opportunities Fund, a close ended debt fund. The primary objective of the fund is to generate returns by investing in debt and money market instruments across the credit spectrum. The fund will invest 50%-100% of asset in debt instruments of companies with long-term credit rating of less than AAA and debt instruments of companies having no long term rating with medium to high risk profile, invest up to 35% of asset in debt instruments of companies with long-term credit rating of AAA and government securities with low to medium risk profile and invest 5%-50% of asset in money market instruments including CBLO and cash with low risk profile. The benchmark index for the fund is CRISIL Short Term Bond Fund index. The fund managers will be Alok Sahoo and Hetal Shah.

ICICI Prudential Growth Fund – Series 8

Opens: January 9, 2015
Closes: January 23, 2015

ICICI Prudential Mutual Fund has launched a new fund as ICICI Prudential Growth Fund – Series 8, a close ended equity fund. The investment objective of the fund is to provide capital appreciation by investing in a well-diversified portfolio of equity and equity related securities. The fund will invest 80%-100% of its assets in equity and equity related instruments with medium to high risk profile and will invest up to 20% of assets in debt, money market instruments and cash with low to medium risk profile. Investment in securitized debt can be up to 50% of debt allocation of the fund. The benchmark index for the fund is CNX Nifty Index. The fund is proposed to be listed on BSE. The fund manager will be Chintan Haria. The investments under ADRs/GDRs and other foreign securities will be managed by Shalya Shah.


Reliance Capital Builder Fund II – Series B

Opens: January 9, 2015
Closes: January 23, 2015

Reliance Mutual Fund has launched a new fund as Reliance Capital Builder Fund II - Series B, a close ended equity oriented fund with the duration of 3 years from the date of allotment. The investment objective of the fund is to provide capital appreciation to the investors, which will be in line with their long term savings goal, by investing in a diversified portfolio of equity and equity related instruments with small exposure to fixed income securities. The fund will allocate 80%-100% of assets in diversified equity and equity related instruments with medium to high risk profile and invest up to 20% of assets in debt and money market instruments with low to medium risk profile. The benchmark index for the fund is S&P BSE 200 Index. The fund managers of the fund are Samir Rachh and Jahnvee Shah (Fund manager-overseas investments).


Birla Sunlife Manufacturing Equity Fund

Opens: January 13, 2015
Closes: January 27, 2015

Birla Sun Life Mutual Fund has launched a new fund as Birla Sun Life Manufacturing Equity Fund, an open ended manufacturing sector fund. The primary investment objective of the fund is to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in manufacturing activity. The fund would invest 80%-100% of assets in equity and equity related securities of manufacturing sector companies with high risk profile and invest up to 20% of assets in cash, money market, and debt instruments with low risk profile.  The benchmark index for the fund is S&P BSE 500.  The fund manager will be Anil Shah.


JP Morgan Economic Resurgence Fund

Opens: January 13, 2015
Closes: January 27, 2015

JPMorgan Mutual Fund has launched a new fund as JPMorgan India Economic Resurgence Fund, an open ended equity fund. The investment objective of the fund is to generate long term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of companies with focus on riding economic cycles through dynamic allocation between various sectors and stocks at different stages of economic activity. The fund would allocate 80%-100% of assets in equity and equity related securities with high risk profile and invest up to 20% of assets in debt and money market instruments with low to medium risk profile. The benchmark index for the fund is S&P BSE 200. The fund managers will be Harshad Patwardhan and Karan Sikka.

Axis Hybrid Fund – Series 19

Opens: January 15, 2015
Closes: January 27, 2015

Axis Mutual Fund has launched a new fund named as Axis Hybrid Fund Series 19, a 42 months close ended debt fund. In order to provide liquidity, the units of the fund will be listed on the capital market segment of the NSE and/or any other Stock Exchange. The primary objective is to generate income by investing in high quality fixed income securities that are maturing on or before the maturity of the fund whilst the secondary objective is to generate capital appreciation by investing in equity and equity related instruments. The fund will allocate 70% to 95% of assets in debt instruments including securitized debt with low to medium risk profile, invest up to 25% of assets in money market instruments with low risk profile and it would allocate 5% to 30% of assets in equity and equity related instruments with high risk profile. Investment in securitized debt would be up to 50% of the net assets of the fund. The fund shall not invest in foreign securitized debt. Benchmark index for the fund is Crisil MIP Blended Fund Index. The fund managers are Devang Shah and Jinesh Gopani.

DSP BlackRock Dual Advantage Fund Series 34 – 36M

Opens: January 15, 2015
Closes: January 28, 2015

The primary investment objective of DSP BlackRock Dual Advantage Fund Series 34 – 36M is to generate returns and seek capital appreciation by investing in a portfolio of debt and money market securities. The fund also seeks to invest a portion of the portfolio in equity and equity related securities to achieve capital appreciation. As far as investments in debt and money market securities are concerned, the fund will invest only in securities which mature on or before the date of maturity of the fund. The performance of the fund will be benchmarked against CRISIL MIP Blended Index. The fund manager will be Dhawal Dalal.

Sundaram Value Fund – Series II

Opens: January 15, 2015
Closes: January 29, 2015

Sundaram Mutual Fund has launched a new fund named as Sundaram Value Fund Series - II, a close ended equity fund with the duration of 5 years from the date of allotment of units. The objective of the fund is to provide capital appreciation by investing in a well-diversified portfolio of stocks through fundamental analysis. The fund will allocate up to 80% of assets in equity and equity related securities with high risk profile and invest up to 20% of assets in fixed income and money market instruments with low to medium risk profile. The fund's performance will be benchmarked against S&P BSE 500 Index. The fund managers are S. Krishnakumar, Dwjendra Srivastava, and S. Bharath (dedicated fund manager for investments in overseas securities).


LIC Nomura MF RGESS Fund – Series 3

Opens: January 16, 2015
Closes: January 30, 2015

LIC Nomura Mutual Fund has launched a third series of its Rajiv Gandhi Equity Saving Scheme (RGESS) called LIC Nomura MF RGESS Fund – Series 3. RGESS is designed to provide 50% deduction from income for investments of up to Rs 50,000 which is over and above deduction of Rs 1 lakh under Section 80C of Income Tax Act. Benchmarked against S&P BSE 100 index, LIC Nomura Rajiv Gandhi Savings Scheme Fund – Series III aims to provide capital appreciation from a portfolio that is substantially constituted of equity securities which are specified as eligible securities for RGESS. The fund will invest in stocks of BSE 100 and CNX 100. The investment strategy involves the analysis of the fundamentals and evaluation of the attractiveness of investment opportunities. Such analysis includes historical as well as current financial condition of the company, quality of the management, business prospects and valuation. Nobutaka Kitajima and Ramnath Venkateswaran are the fund managers.

Tata Dual Advantage Fund Series 2 – Scheme C

Opens: January 16, 2015
Closes: January 30, 2015

Tata Mutual Fund has launched a new fund named as Tata Dual Advantage Fund Series 2 - Scheme C, a close ended income fund. The tenure of the plan is 1099 days from the date of allotment. The primary objective of the fund is to seek to generate income and/or capital appreciation by investing predominantly in portfolio of fixed income instruments having maturity on or before the date of the maturity of the fund. The fund will invest small portion of the fund assets in equity/equity related instrument including derivative instruments. The fund will allocate 70%-95% of assets in debt and money market instruments and securitized debt with low to medium risk profile and it would allocate 5%-30% of assets in equity and equity related instruments including derivative instruments (options/futures) with medium to high risk profile. Of the investments in debt instruments, 81% to 86% would be invested in AA rated non-convertible debentures/government securities. The fund is proposed to be listed on BSE. The benchmark index for the fund will be CRISIL MIP Blended Index. The fund managers are Amit Somani (Debt) and Rupesh Patel (Equity).

HDFC Focused Equity Fund

Opens: January 15, 2015
Closes: February 13, 2015

HDFC Mutual Fund announced the launch of its HDFC Focused Equity Fund - Plan A, a 3 year close-ended equity fund investing in eligible securities as per Rajiv Gandhi Equity Savings Scheme (‘RGESS’). HDFC Focused Equity Fund - Plan A would invest in a portfolio of diversified equity securities – either from the list of BSE-100 or CNX-100, public sector enterprises categorized as Maharatna, Navratna, Miniratna by central government, and also in follow on public offer of all eligible securities and IPOs of public sector undertaking, where government shareholding is at least 51% which is scheduled for getting listed in the relevant previous year and annual turnover is not less than Rs. 4,000 crore during each of the preceding three years. The fund shall predominantly invest in the eligible securities of RGESS (minimum 95%) and shall invest in cash and cash equivalents and money market instruments and liquid schemes (maximum 5%), only to the extent necessary to meet the liquidity requirements for honouring redemptions (at the time of maturity)/expenses. From the tax benefit point of view, investment in HDFC Focused Equity Fund - Plan A is eligible for 50% tax deduction of the invested amount under section 80CCG of the Income - Tax Act, 1961 for new retail investors investing up to Rs. 50,000 and having gross total annual income less than or equal to Rs. 12 lakhs. This deduction is over and above the Rs. 1 lakh limit offered under section 80C of the Income - Tax Act, 1961. The maximum permissible investment for claiming deduction under section 80CCG of Income-tax Act, 1961 is Rs. 50,000 and the investor would get a 50% deduction of the amount invested from the taxable income for that year. HDFC Focused Equity Fund - Plan A would benchmark its investment performance against S&P BSE 100 Index. The units of the fund will be listed on both NSE and BSE. The fund will be managed by Srinivas Rao Ravuri.


Canara Robeco Capital Protection Oriented Fund - Series 4 & 5, ICICI Prudential Capital Protection Oriented Fund Series VIII – Plan A to J, Union KBC Trigger Fund - Series 2, ICICI Prudential India Recovery Fund – Series 1 to 3, IDFC Corporate Bond Fund, and Peerless Midcap Fund are expected to be launched in the coming months. 

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