NFO NEST

April 2017

There has been a surge in NFO schemes in the equity mutual fund segment in recent months amidst a strong rally in share prices. In the financial year 2016-17, the mutual fund sector saw 29 equity NFOs, both open-ended as well as closed-end. As many as 25 of them hit the market in the second half, September to March period,  garnering assets worth Rs. 4220 crore though new launches are only a fraction of what is collected in the existing funds. Of the 25 new launches, 19 were closed-end schemes.

NFOs of various hues adorn the April 2017 NFONEST.

Sundaram Select Microcap Fund – Series XIV

Opens: April 10, 2017
Closes: April 24, 2017

Sundaram Mutual Fund has launched a new fund named as Sundaram Select Microcap Fund - Series XIV, a close ended equity fund. The tenure of the fund is 5 years from the date of allotment. The objective of the fund is to seek capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as micro-caps. A company whose market capitalisation is equal to or lower than that of the 301st stock by market cap on the NSE at the time of investment will be considered to be in microcap category. Benchmark Index for the fund is S&P BSE Small Cap Index. The fund managers are Mr. S. Krishnakumar and Mr. Dwijendra Srivastava.

UTI Capital Protection Oriented Fund – Series IX-I

Opens: April 12, 2017

Closes: April 26, 2017

UTI Mutual Fund has launched UTI Capital Protection Oriented Fund – Series IX-I, a close-ended Capital Protection Oriented Income Fund. The fund matures 1467 days from the date of allotment. The investment objective of the fund is to endeavour to protect the capital by investing in high quality fixed income securities as the primary objective and generate capital appreciation by investing in equity and equity related instruments as secondary objective. The product is suitable for investors who are seeking capital protection at maturity and capital appreciation over medium term by investing in debt and money market securities (70%-100%) and equity and equity related instruments (0%-30%). The fund is benchmarked against CRISIL MIP Blended Index. The fund managers are Mr. Sunil Patil and Mr. V. Srivatsa.      

Mahindra Mutual Fund Badhat Yojana

Opens: April 20, 2017

Closes: May 4, 2017

Mahindra Mutual Fund has launched a new open ended equity fund Mahindra Mutual Fund Badhat Yojana. The investment objective of the fund is to provide medium to long term capital appreciation through appropriate diversification by investing predominantly in equity and equity related securities including derivatives and taking low risk on business quality. The fund will be managed by Mr. Ratish Warier.

Mahindra Mutual Fund Bal Vikas Yojana

Opens: April 20, 2017

Closes: May 4, 2017

Mahindra Mutual Fund has launched Mahindra Mutual Fund Bal Vikas Yojana, an open ended balanced fund. The investment objective of the fund is to generate long term capital appreciation through investments in equity and equity related instruments and also income from investing in debt and money market instrument. Investments in this fund can be made only in the name of the minor child and contributions in the investment account could be made by all family members and friends. The fund offers optional lock-in investment till the child turns 18 years old. The fund will be benchmarked against CRISIL Balanced Fund Index. The fund managers are Ratish Varier and Rahul Pal.

Sundaram Long Term Micro Cap Tax Advantage Fund – Series V

Opens: March 29, 2017

Closes: June 29, 2017

Sundaram Mutual Fund has launched a new fund Sundaram Long Term Micro Cap Tax Advantage Fund – Series V is 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 predominantly investing in equity and equity-related instruments of companies that can be termed as micro-cap. For the purpose of investment by the scheme '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 capitalization) on the National Stock Exchange of India limited, Mumbai, at the time of investment. The fund is benchmarked against the Nifty Small Cap 100 Index. The fund managers are S Krishnakumar and Dwijendra Srivastava.

Birla Sun Life Pharma and Healthcare Fund, Sundaram TOP 100 – Series VIII & IX, Sundaram Value Fund – Series IX-X, Birla Dual Advantage Fund – Series 2&3 and Axis Dual Advantage Fund – Series 1-4 are expected to be launched in the coming months.