Monday, May 19, 2008

NFO NEST - May 2008

NFO Nest

Waxing and waning of NFOs…

For the first day in nearly a year, Indians did not have a new equity fund to invest in on April 9, 2008 marking a pause in the flurry of fund launches in a booming mutual fund market. Asset management
firms offered 60 new equity funds last year, the highest number in any year. The momentum has somewhat been thwarted by the weak stock market, with only 19 new stock funds having been introduced so far in 2008, according to data from global fund tracker Lipper.

The following funds find their place in the NFO nest in May, 2008.

Sundaram BNP Paribas Select Thematic Funds Entertainment Opportunities Fund
Opens: 24 April, 2008 Closes: 20 May, 2008

The Thematic Fund aims at achieving long term capital appreciation by investing primarily in the equity and equity related instruments of companies that focus on opportunities in the entertainment business in India and overseas markets. The investment universe may also include players in spaces such as broadcasting, content providers, electronic news, print media, multiplexes, web-based services, leisure services, distribution, IT & telecom services, gaming, retailing, luxury products & services and sports businesses as well as other new segments that may emerge on the listed space. Beneficiaries and providers of equipment/services/turnkey solutions to such players may also be part of the portfolio. The scheme will invest 65% to 100% in equity and equity linked instruments of predominantly Indian companies relevant to the theme and 0% to 35% in equity and equity-related instruments outside the theme. Further 0% to 15% could be invested in fixed income securities including money market instruments. The portfolio manager will adopt an active management style to optimize returns. The performance of the scheme will be measured against S&P CNX Media and Entertainment Index.

Sahara Power and Natural Resources Fund Opens:28 April,2008 Closes:27 May,2008

Sahara Power and Natural Resources Fund aims at generating long term capital appreciation through investment in equity and equity related securities of companies engaged in the business of generation, transmission, distribution of Power or in those companies that are engaged directly or indirectly in any activity associated in the power sector or principally engaged in discovery, development, production, processing or distribution of natural resources.The scheme will invest 65% to 100% in equity and equity linked instruments and 0% to 35% in debt and money market instruments.

Standard Chartered Arbitrage Plus Fund Opens: 5,May,2008 Closes:30 May,2008

Standard Chartered Arbitrage Plus Fund aims at generating income by taking advantage of opportunities in the cash and the derivative segments of the equity markets including the arbitrage opportunities available within the derivative segment, by using other derivative based strategies and by investing the balance in debt and money market instruments.
Reliance Banking Exchange Traded Fund Opens: 12,May,2008 Closes:30 May,2008

Reliance Banking Exchange-traded Fund is an open-ended, exchange listed, index linked scheme that aims at providing returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Bank Index. However, the scheme’s performance may differ from that of the underlying index due to tracking error. The fund house shall use a passive or indexing approach to try and achieve Scheme`s investment objective. The AMC does not make any judgments about the investment merit of a particular stock or a particular industry segment nor will it attempt to apply any economic, financial or market analysis. The scheme will invest 90-100% in securities covered by the CNX bank index. It will invest up to 0-10% in money market instruments.

Mirae Asset Global Commodity Stocks Fund, Kotak Nifty Junior ETF, Mirae Asset India Sector Leader Fund, ING Latin America Equity Fund, HSBC Banking and Financial Services Fund, ICICI Prudential Banking and Financial Services Fund, SBI Magnum Sector Funds Umbrella (MSFU) - Banking and Financial Services Fund, ABN AMRO Banking and Financial Services Fund, ING US Opportunistic Equity Fund, Bharthi AXA Green Fund are expected to be launched in the coming months.

With equity markets turning bearish and the commodity cycle at its peak, mutual funds are now shifting their focus to commodities. Fund houses plan to enter this segment through commodity-oriented stocks and mutual funds abroad. Entertainment and media funds may hog the limelight, given the gargantuan growth in this sector.

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