Monday, October 20, 2014

NFO NEST

October 2014



Equity funds engulf the NFO market





It is raining equity NFOs. So far in 2014, the Rs 10 lakh crore Indian mutual fund sector has launched 45 new equity offers, the highest since 2007, when 48 NFOs (the highest so far) had hit the market. In terms of asset mobilisation, however, fund houses have managed to raise only Rs 6,426 crore, about a fifth of Rs 29,284 crore raised during the peak of the bull market in 2007. Nevertheless, the amount garnered in 2014 is the highest since 2008. Most of the NFOs launched in 2014 are close-ended schemes, with a lock-in of three to five years. Of the Rs 6,426 crore raised in 2014, 80%, or Rs 5,000 crore, has been mobilised through the close-ended route. In a way, it marks a reversal of fortune for new mutual fund products, which had lost favour among investors in recent years. A sharp increase in stock prices through the past year, as well as good returns generated by existing mutual fund schemes, has helped regain investor interest.



HDFC Capital Protection Oriented Fund – Series III


Opens: October 7, 2014

Closes: October 20, 2014



HDFC Capital Protection Oriented Fund - Series III is a close-ended capital protection oriented fund with the duration of 1100 days 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 and money market instruments with low to medium risk profile and invest up to 25% in equity and equity related instruments (including equity derivatives) with high risk profile. The benchmark index for the fund is CRISIL MIP Blended Index. The fund will be managed by Anil Bamboli (Debt Portfolio), Vinay R Kulkarni (Equity Portfolio), and Rakesh Vyas (Overseas Investments).



ICICI Prudential Capital Protection Oriented Fund VII – Plan A


Opens: October 7, 2014

Closes: October 20, 2014




ICICI Prudential Capital Protection Oriented Fund VII - Plan A is a close-ended capital protection oriented fund. The tenure of the fund is 1285 days. 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 provide capital appreciation by investing the balance in equity and equity related securities. The fund would allocate 70%-100% of assets in debt securities & money market instruments with low to medium risk profile and invest up to 30% of assets in equity and equity related securities with medium to high risk profile. The benchmark index for the fund is CRISIL MIP Blended Index. The fund is proposed to be listed on NSE. The fund managers are Vinay Sharma (equity portion), Aditya Pagaria & Rahul Goswami (debt portion), and Ashwin Jain (For investments in ADR / GDR and other foreign securities).




Birla Sunlife Focused Equity Fund – Series 3


Opens: October 7, 2014

Closes: October 21, 2014



Birla Sun Life Focused Equity Fund - Series 3 is a close ended equity fund investing in eligible securities under Rajiv Gandhi Equity Savings Schemes, 2013. The tenure of the fund is three years from the date of allotment. The investment objective of the fund is to generate capital appreciation, from a portfolio of equity securities specified as eligible securities for Rajiv Gandhi Equity Savings Scheme, 2013 (RGESS). The fund does not guarantee/indicate any returns. The fund would allocate 95% to 100% of assets in equity securities specified as eligible securities for RGESS with medium to high-risk profile and up to 5% in cash & cash equivalents and money market instruments with low risk profile. The benchmark index for the fund is CNX 100. The fund manager will be Mahesh Patil.


 

IIFL India Growth Fund


Opens: October 8, 2014

Closes: October 21, 2014



IIFL India Growth Fund is an open-ended equity fund whose investment objective is to generate long term capital appreciation for investors from a portfolio of equity and equity related securities. The fund shall invest 75-100% in equity or equity related instruments with high-risk profile and up to 25% in debt and money market instruments with low to medium risk profile. The benchmark index for the fund is CNX Nifty Index. The fund manager will be Manish Bandi.



Sundaram Select Microcap - Series VII


Opens: October 8, 2014

Closes: October 22, 2014



Sundaram Select Micro Cap - Series VII, a closed-end equity fund, has a tenure of 1400 days from the date of allotment of units. The objective of the fund would be to generate capital appreciation by investing predominantly in equity/ equity-related instruments of companies that can be termed as micro-caps. The fund will invest up to 65%-100% in equity & equity related securities of companies of micro-caps with high-risk profile. On the other hand, it would invest up to 35% in other equity with high-risk profile and fixed income and money market securities with low to medium risk profile. The fund’s performance will be benchmarked against S&P BSE Small Cap Index. The fund managers are S Krishnakumar (Equity Portion) and Dwijendra Srivastava (Fixed - Income).




ICICI Prudential Growth Fund – Series 4


Opens: October 13, 2014

Closes: October 27, 2014



ICICI Prudential Growth Fund - Series 4 is a close-ended equity fund, whose tenure is 1279 days from the date of allotment. 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 & equity related instruments with medium to high risk profile and 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 will be CNX Nifty Index. The fund is proposed to be listed on BSE. The fund managers are Manish Gunwani and Ashwin Jain (for investments in ADR / GDR and other foreign securities).




ICICI Prudential Multiple Yield Fund - Series 8 – Plan B


Opens: October 15, 2014

Closes: October 29, 2014



ICICI Prudential Multiple Yield Fund - Series 8 - Plan B is a close-ended income fund. 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 95% of assets in debt securities (including government securities) with low to medium risk profile. It would allocate up to 20% of assets in money market instruments, cash and cash equivalents with low to medium risk profile and it would allocate 5% to 35% of the asset in equity or equity related securities with medium to high risk profile. Of the investments in debt instruments, 90%-95% would be invested in AA rated non-convertible debentures. The benchmark index for the fund will be CRISIL MIP Blended Index. The fund is proposed to be listed on NSE. The fund will be managed by Vinay Sharma (equity portion), Rahul Goswami and Aditya Pagaria will jointly manage the debt portion, and Ashwin Jain will manage all investment under ADRs/GDRs and other foreign securities.



SBI Inflation Indexed Bond Fund


Opens: October 17, 2014

Closes: October 31, 2014



SBI Inflation Indexed Bond Fund is an open-ended debt fund. The investment objective of the fund is to generate capital appreciation and income through investment in inflation indexed securities. The fund shall invest 70%-100% in inflation indexed securities and invest up to 30% in debt & money market instrument / units of debt & liquid mutual funds with low to medium risk profile. The benchmark index for the fund is I-Sec Composite Index. The fund manager will be Dinesh Ahuja.



Birla Sunlife Equity Savings Fund, Birla Sunlife Manufacturing Equity Fund, Birla Sunlife Emerging Leaders Fund – Series 5 & 6, DSP Blackrock Arbitrage Advantage Fund, Axis Equity Opportunities Fund, Sundaram Banking and PSU Debt Fund, LIC Nomura Mutual Fund Banking & Financial Services Fund, UTI Short Term Opportunities Fund, Mirae Asset Balanced Fund, ICICI Prudential Equity Advantage Fund – Series 1 to 8, Reliance Equity Saving Fund, L & T Resurgent India Corporate Bond Fund, IIFL Balanced Fund, SBI Equity MIP Fund, and LIC Nomura Mutual Fund Rajiv Gandhi Equity Saving Scheme Fund Series – 3 are expected to be launched in the coming months.




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