NFO NEST

May 2015

NFOs on the rise

With rising demand from retail investors for mutual fund schemes, mutual funds have lined up 70 NFOs and have filed draft documents for them with SEBI since the beginning of 2015. Some of these NFOs have already been launched, while other schemes would be opened for subscription as soon as the necessary clearances are obtained. Of these 70 schemes filed, four draft offers have been filed in May 2015 so far, while nine papers were submitted in April, 24 in March, 19 in February, and 13 in January 2015. Manufacturing, retirement, economic recovery, resurgence of the business cycle, and e-commerce are some of the themes that are attracting mutual fund houses like Reliance Mutual Fund, LIC Nomura Mutual Fund, ICICI Prudential Mutual Fund, and SBI Mutual Fund. Besides, a large number of these funds are aimed at investment in equity and equity-related securities. 

SBI Dual Advantage Fund Sr 9

Opens: May 5, 2015

Closes: May 19, 2015

SBI Mutual Fund has unveiled a new fund named as SBI Dual Advantage Fund - Series IX, a close ended hybrid fund. The tenure of the fund is 1111 days from the date of allotment. The primary investment objective of the fund is to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the fund. The secondary objective is to generate capital appreciation by investing a portion of the fund’s corpus in equity and equity related instruments. The fund will invest 55%-95% of assets in debt and debt related instruments, invest upto 10% of assets in money market instruments with low to medium risk profile, and invest 5%-35% of assets in equity and equity related instruments including derivatives with high risk profile. Benchmark Index for the fund is CRISIL MIP Blended Fund Index. Rajeev Radhakrishnan will manage the debt portion and Richard D'souza will manage investments in equity and equity related instruments of the fund.

ICICI Prudential Multiple Yield Fund Sr 9

Opens: May 7, 2015

Closes: May 21, 2015

ICICI Prudential Mutual Fund has launched a new fund named as ICICI Prudential Multiple Yield Fund - Series 9, a close ended income fund. The tenure of the plan is 1141 days from the date of allotment of units. 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 will allocate upto 30% of assets in money market instruments, cash and cash equivalents with low to medium risk profile and it will allocate 5% to 35% of the assets in equity or equity related securities with medium to high risk profile. Of the investments in debt instruments, 84%-89% would be invested in AA rated non-convertible debentures. The benchmark index for the fund will be CRISIL MIP Blended Index. The equity portion will be managed by Vinay Sharma. Rahul Goswami and Chandni Gupta will jointly manage the debt portion of investments under the fund. The investments under the ADRs/GDRs and other foreign securities will be managed by Shalya Shah.

Axis Hybrid Fund Sr 23

Opens: May 8, 2015

Closes: May 21, 2015

Axis Mutual Fund has launched a new fund named as Axis Hybrid Fund Series 23, a 1275 days close ended debt fund. This product is suitable for investors who are seeking capital appreciation while generating income over medium to long term. The fund invests in debt and money market instruments as well as equity and equity related instruments with medium risk. 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 upto 25% of assets in money market instruments with low risk profile, and it will allocate 5% to 30% of assets in equity and equity related instruments with high risk profile. Investment in securitized debt will be up to 50% of the net assets of the fund. The fund will 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.

SBI Equity Savings Fund

Opens: May 11, 2015

Closes: May 25, 2015

SBI Mutual Fund has launched a new fund as SBI Equity Savings Fund, an open ended equity fund. The investment objective of the fund is to generate income by investing in arbitrage opportunities in the cash and derivatives segment of the equity market and capital appreciation through a moderate exposure in equity. The fund will invest 70-30% of assets in equity and equity related instruments including derivatives (out of which, 0-45% will be invested in cash-future arbitrage and 20-50% will be invested in net long equity exposure) with medium to high risk profile and invest 70-30% of assets in debt and money market instruments with low to medium risk profile. The benchmark index for the fund is a combined index - 30% in CNX Nifty and 70% in Crisil Liquid Fund Index. The fund managers are Neeraj Kumar and Ruchit Mehta.

Reliance Equity Savings Fund

Opens: May 12, 2015
Closes: May 26, 2015

Reliance Equity Savings Fund is a balanced offering with conservative equity allocation. The fund seeks to generate income by taking advantage of the arbitrage opportunities that potentially exist between cash and derivatives market and within the derivatives segment along with investments in debt securities and money market instruments. 20-40% is allocated to active equities, 25% to 70% to arbitrage opportunities, and 10% to 35% to fixed income securities. The fund will enjoy growth potential due to moderate exposure to equity, moderate volatility than pure equity funds, and tax efficiency. The fund’s performance is benchmarked against a combined index comprising 40% of CRISIL Liquid Fund Index, 30% of CRISIL Short Term Bond Fund Index, and 30% in CNX Nifty. Sanjay Parekh, Anju Chajjer, and Jahnvee Shah (Overseas Investments) are the fund managers.

India Bulls Make in India – Target Return Fund, Tata Twenty Equity Fund, BOI AXA Capital Protection oriented Fund Series 4, SBI ETF Nifty, ICICI Prudential Wealth Builder Fund Series 1 to 5, LIC Nomura Mutual Fund Retirement Benefit Fund, Pramerica Fixed Duration Fund – Series 19 to 20, Sundaram Value Fund Series I-III, Canara Robeco Capital Protection Oriented Fund – Series 6, 7, and 8, Reliance Constant Maturity Guilt Fund (5 years, 10 years, and 25 years) are expected to be launched in the coming months.