NFO NEST
January 2014
FMPs losing flavour?
Fund houses are finding it difficult to mop up
the requisite target of Rs 20 crore in their FMPs and as a result of which five
fund houses had to extend their NFO period. In fact, in November 2013, two fund
houses failed to collect the minimum corpus (Rs 20 crore) and ended up by
returning back the money to investors. This slowdown in FMPs is largely on
account of volatility in bond yields, growing appetite for tax free bonds,
decreasing credit quality of papers, and unavailability of double indexation
benefit on FMPs less than 15 months. SEBI rules state that NFOs of FMP can be
kept open for subscription for a maximum of 15 days; however, many fund houses
prefer to launch such schemes with a shorter NFO window of 1-3 days keeping in
mind the interests of institutional investors. The short NFO window in FMPs
ensures that the money collected from institutional investors is not kept idle. FMPs with NFO period of 8-10
days are typically designed for retail investors. Investors cannot reap the
benefits of double indexation in less than 15 month tenor FMPs by investing in
December. Most of the funds which had extended their NFO period have a maturity
period of less than 15 months. Over a period of time, FMPs have lost their
flavor. In addition, equity market has showed some recovery in the recent past
signaling a shift of investment sentiment.
Fund houses are now rushing to launch funds of all hues,
with the dozen funds figuring in the January 2014 NFONEST being equity-oriented,
debt-oriented, capital protection-oriented, and opportunity funds.
Sundaram Select Microcap – Series II
Opens: January
7, 2014
Closes: January 21, 2014
There are a handful of equity funds dedicated to micro-caps, and
now Sundaram Mutual Fund has also
decided to throw its hat in the ring with a fund named Sundaram Select Microcap
Series II . This is a five-year
closed-end fund and the fund' s
definition of micro-cap is linked to a rank on the NSE. It defines the
beginning of micro-cap at the 301st rank on the NSE. By this definition, all
companies that are smaller in capitalisation than number 301 ( currently, HDIL
- Housing Development & Infrastructure Ltd. with Rs 2082 crore
capitalisation) are micro-cap. The fund need not have a pure micro-cap
strategy--according to the prospectus, micro-cap exposure can vary from 100%
down to 65%, the remaining 35 % could be deployed in other equities or fixed
income by the fund manager. The fund managers are S. Krishnakumar (Equity) and Dwijendra
Srivastava (Fixed-Income).
HDFC Capital Protection Oriented Fund – Series II
(36M)
Opens: January
8, 2014
Closes: January 22, 2014
HDFC Mutual Fund has launched a new Fund named as HDFC
Capital Protection Oriented Fund- Series II - 36M January 2014, a close ended
capital protection oriented fund with the duration of 36 months from the date
of allotment. The investment objective of the fund is to generate returns by
investing in a portfolio of debt
and money market securities which mature on or before the date of maturity of
the fund. The fund also seeks to invest a portion of the portfolio in equity and
equity related securities to achieve capital appreciation. The fund would
invest 75% to 100% of assets in debt securities and invest up to 25% in equity
and equity related instruments (including equity derivatives) with high risk
profile. Benchmark Index for the plan is CRISIL MIP Blended Index. The fund
managers are Anil Bamboli (Debt Portfolio) and Vinay R kulkarni (Equity
Portfolio). Rakesh Vyas will be the dedicated fund manger for Overseas
Investments.
IDFC Equity Opportunity
Fund – Series 2
Opens: January
13, 2014
Closes: January 24, 2014
IDFC Equity Opportunities Fund – Series 2 is
a close-ended Fund of three year tenor and the primary investment objective of
the fund is to seek to generate capital appreciation from a portfolio that is
invested in equity and equity related securities of companies. The Fund will
invest in either growth stocks or value stocks or both without any
capitalization bias and will be diversified across sectors. As and when the
fund manager is of the view that the investment has met its desired objective,
the same shall be liquidated and distributed by way of dividend. The fund will
be managed by Ankur Arora.
DWS Inflation Indexed Bond Fund
Opens: January
16, 2014
Closes: January 27, 2014
The
DWS Inflation Indexed Bond Fund will invest in Inflation Index Bonds (IIBs).
These are predominantly issued by the Government of India. The Fund is an open
ended debt fund and will predominantly invest in these securities with the
intention of delivering above inflation returns to investors. The returns are
therefore linked to inflation rate. The Fund also aims to benefit from the
accrual income and potential capital appreciation from IIBs. By investing through the mutual fund route,
investors have the added benefit of ease of investment and liquidity along with
tax efficient returns. The benchmark for the fund is I-Sec Composite Index. The
Fund will be managed by Nitish Gupta.
ICICI Prudential Multiple Yield Fund – Series 5 –
Plan D
Opens: January
14, 2014
Closes: January 28, 2014
ICICI Prudential
Mutual Fund has launched a new close ended income fund named "ICICI
Prudential Multiple Yield Fund - Series 5 - 1100 Days - Plan D" with
maturity period of 1100 days from the date of allotment. The asset allocation
of the fund will be in such a way that the objective of the fund to generate
returns will be met by investing in a portfolio of fixed income instruments.
Hence, the fund will allocate 70 to 95% of asset in debt securities, 0 to 20%
in money market securities, cash and cash equivalent and 5 to 30% in equity or
equity related securities. The performance of the fund will be benchmarked
against CRISIL MIP Blended Index. Rajat Chandak, Rahul Goswami, Aditya Pagaria
and Abhishek Pathak will be the Fund.
Birla Sun life Capital Protection Oriented Fund –
Series 18
Opens: January
15, 2014
Closes: January 29, 2014
Birla Sun Life
Capital Protection Oriented Fund – Series 18 seeks capital protection by
investing in fixed income securities maturing on or before the tenure of the
fund and seeks capital appreciation by investing in equity and equity related
instruments. The fund will be benchmarked against CRISIL MIP Blended Index.
Prasad Dhonde and Vinet Maloo will be the designated fund managers of the fund.
Religare Invesco Pan European Equity Fund
Opens: January
15, 2014
Closes: January 29, 2014
Religare
Invesco Mutual Fund has announced
the new fund offer of an open-ended fund-of-funds scheme- Religare
Invesco Pan European Equity Fund. The fund will invest in Invesco
Pan European Equity Fund (a Luxembourg
Union
KBC Capital Protection Oriented Fund – Series 5
Opens: January
15, 2014
Closes: January 29, 2014
Union KBC Capital Protection Oriented Fund - Series 5 is
a 36 month close ended capital protection oriented scheme that endeavours to
offer an element of capital protection at the time of maturity of the fund and
also aims to grow investors’ money. By investing a majority of the money in
highly rated debt and money market instruments, the fund aims to protect the
capital at the time of maturity. The remaining proportion of investors’ money
shall be invested in equity and equity related
instruments which may generate a positive return on
initial investment and grow the money. The fund will be
managed by Ashish Ranawade and Parijat Agrawal.
Canara Robeco Medium Term Opportunities Fund
Opens: January
17, 2014
Closes: January 31, 2014
Canara Robeco
Medium Term Opportunities Fund is an open ended debt fund. The investment
objective of the fund is to generate income and capital appreciation through a
portfolio constituted of medium term debt instruments and money market
instruments. The asset allocation of the fund will be in such a way that the
objective of the scheme to generate income and capital appreciation will be met
by investing in a portfolio of debt instruments and money market instruments.
Hence, the fund will allocate 0 to 40% of asset in money market instruments and
60 to 100% of asset in GoI and debt securities. The fund shall not make any
investments in foreign debt/securitized debt. The performance of the fund will
be benchmarked against CRISIL Composite Bond Fund Index. Avnish Jain will be
the Fund Manager.
DSP BlackRock Dynamic Asset Allocation Fund
Opens: January
17, 2014
Closes: January 31, 2014
DSP BlackRock announced
the launch of the DSP BlackRock Dynamic Asset Allocation Fund.
This first-of-its-kind open ended fund of funds will dynamically manage the
asset allocation between the specified equity mutual funds schemes
and debt mutual funds schemes of DSP BlackRock Mutual Fund,
based on the relative valuation of equity and debt markets. The fund would primarily invest in DSP BlackRock Top
100 Equity Fund and DSP BlackRock Equity Fund for equity exposure. While for
debt exposure the fund will invest in DSP BlackRock Strategic Bond Fund and DSP
BlackRock Short Term Fund. The fund would use the yield gap metric to assess
market valuations. The fund will be managed by Dhawal Dalal.
ICICI Prudential Capital Protection Oriented Fund
– Series V – Plan B
Opens: January
17, 2014
Closes: January 31, 2014
ICICI
Prudential Capital Protection Oriented Fund V - Plan B - 1100 Days is a close
ended Capital Protection Oriented Fund. The investment objective of the fund is
to seek to protect capital by investing a portion of the portfolio in highest
rated debt securities and money market instruments and also to provide capital
appreciation by investing the balance in equity and equity related securities.
The debt securities would mature on or before the maturity of the fund. Rajat
Chandak, Rahul Goswami, and Aditya Pagaria will be the fund managers.
ICICI Prudential Equity Savings Fund – Series 1
Opens: January
20, 2014
Closes: February 7, 2014
ICICI Prudential Asset Management Company has announced the launch of
ICICI Prudential Equity Savings Fund, a close ended equity fund that focuses on investing in equity
securities of
companies which are likely
to see expansion in Return on
Equity over the next 3 years. The fund aims at adopting a focused approach on
select high conviction stocks which are likely to gain from factors such as the
improving economy, a favorable regulatory change, change in the industry
dynamics or company specific factors. The fund will be adequately
diversified while not restricting itself to the benchmark sector weights. The
fund is also valid for tax benefit under the RGESS. The
portfolio will be managed by Manish Gunwani and Venkatesh Sanjeevi.
Birla Sun Life Focused Equity Fund – Series 1
Opens: January
15, 2014
Closes: February 13, 2014
Birla Sun Life Focused Equity Fund - Series 1, a 3 year
close ended RGESS fund, focuses on creating value by investing in shares of
handpicked companies from BSE 100, CNX 100 and PSU Navratnas, Maharatnas and
Miniratnas. The fund would follow a blend of bottom up approach (for stock
selection) and top down approach (for sector allocation). The fund manager
would primarily focus on long term growth for identifying stocks. The objective
would be to identify business with superior growth prospects and strong
management available at reasonable valuation and offering higher risk adjusted
returns. The fund will be benchmarked against CNX 100. Anil Shah will manage
the fund.
SBI Tax Advantage Fund – Series III
Opens: December
28, 2013
Closes: March 27, 2014
The investment objective of the SBI Tax
Advantage Fund – Series III is to generate capital appreciation over a period
of ten years by investing predominantly
in equity and equity-related instruments of companies along with income tax
benefit. The fund will be managed by Richard Dsouza.
HDFC
RGESS – Series 2, Axis Hybrid Fund Series 11-13, UTI Multi cap Fund, Baroda
Pioneer Credit Opportunities Fund, ICICI Prudential Retirement Income Fund,
Reliance Close-ended Equity Fund II, Peerless Overnight Fund, Birla Sun Life
CPO Fund Series 19 and 20, and ICICI Prudential Growth Fund – Series 1 and 2 are
expected to be launched in the coming months.
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