NFO NEST

September 2016

NFOs of various hues adorn the May 2016 NFONEST.

Motilal Oswal MOSt Focused Dynamic Equity Fund

Opens: September 6, 2016

Closes: September 20, 2016

Motilal Oswal Asset Management Co. Ltd has launched a new fund that aims to rebalance debt and equity, Motilal Oswal MOSt Focused Dynamic Equity Fund. The fund house has devised an index in-house (but validated and maintained by the India Index Services Ltd; a National Stock Exchange’s subsidiary) that takes into account Nifty 50 index’s Price-Earnings ratio, Price to Book ratio and Dividend Yield. A lower value of this index (called Motilal Oswal Value Index or MOVI) indicates that the market valuations are low and therefore attractive. The fund has already decided its equity and debt exposure at various MOVI levels. Based on this matrix, the fund will invest in equities and debt, accordingly. In addition to buying equity shares, the fund will take derivative exposures to a limited extent, to hedge its positions. Investments are decided by a table based on the index and this removes the fund manager’s subjectivity, as is the case with most other dynamic equity funds. The rebalancing will happen once a fortnight. To ensure that it remains an equity fund, the fund will take equity derivatives exposure as well, to hedge its positions. Combined with a pure-equity exposure, its overall exposure will be at least 65% at all times. The market valuations for dynamic allocation will be indicated by the proprietary Motilal Oswal Value Index (MOVI) which is calculated taking into account Price/Earnings, Price/Book, and Dividend yield of Nifty 50 Index. The MOVI helps gauge attractiveness of the equity market. Taher Badshah (equity) and Abhiroop Mukherjee (debt) are the fund managers of the fund.

UTI Capital Protection Oriented Scheme – Series VIII-II

Opens: September 6, 2016

Closes: September 20, 2016

UTI Mutual Fund has launched a new fund named as UTI Capital Protection Oriented Scheme - Series VIII - II (1831 Days), a close ended capital protection oriented income fund. The duration of the fund is 1831 days from the date of allotment. The investment objective of the fund is to endeavor 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 fund shall invest 70-100% of assets in debt and money market instruments with low to medium risk profile and up to 30% in equity and equity related instruments with medium to high risk profile. Benchmark Index for the fund is CRISIL MIP Blended Index. The fund managers are Sunil Patil and Srivatsa.

IDFC Nifty ETF  

Opens: September 7, 2016

Closes: September 30, 2016

IDFC Mutual Fund has launched a new fund named as IDFC Nifty ETF, an open ended exchange traded fund. The investment objective of the fund is to provide returns that before expenses closely correspond to the total return of the underlying index, subject to tracking errors. The fund will allocate 95% to 100% of assets in securities of companies constituting Nifty 50, the underlying index with medium to high risk profile and invest upto 5% of assets in cash and cash equivalents, money market instruments with residual maturity not exceeding 91 days, liquid and money market mutual fund schemes. Benchmark Index for the fund is Nifty 50. The fund manager is Yogik Pitti.

IDFC Sensex ETF  

Opens: September 7, 2016

Closes: September 30, 2016

IDFC Mutual Fund has launched a new fund named as IDFC Sensex ETF, an open ended exchange traded fund. The investment objective of the fund is to provide returns that before expenses closely correspond to the total return of the underlying index, subject to tracking errors. The fund will allocate 95% to 100% of assets in securities of companies constituting S&P BSE Sensex Index, the underlying index with medium to high risk profile and invest upto 5% of assets in cash and cash equivalents, money market instruments with residual maturity not exceeding 91 days, liquid and money market mutual fund schemes. Benchmark Index for the fund is S&P BSE Sensex Index. The fund manager is Yogik Pitti.

Mahindra Mutual Fund Kar Bachat Yojana

Opens: August 22, 2016

Closes: October 7, 2016

Mahindra Mutual Fund has launched Mahindra Mutual Fund Kar Bachat Yojana - an Open Ended ELSS Scheme with a 3 year lock-in period. Mahindra Mutual Fund Kar Bachat Yojana is targeted at tax payers who can avail of the benefit of deductions allowed under Section 80C of the Income Tax Act 1961. Additionally, since each investment remains locked in for a period of three years, all redemption proceeds are tax free and hence the scheme gives investors an opportunity to build a tax-free corpus over the long term, on investments beyond the 80C limits as well. The Open Ended ELSS fund seeks to generate long-term capital appreciation through a diversified portfolio of equity and equity related securities. The fund’s asset allocation will be 80-100% in equity and equity related securities and 0-20% in debt and money market securities. The fund is benchmarked against the Nifty 200. The fund manager is Mr. Ratish Varier.

Sundaram Long Term Micro Cap Tax Advantage Fund Series III

Opens: August 8, 2016

Closes: November 11, 2016

Sundaram Mutual Fund has launched a new fund named as Sundaram Long Term Micro Cap Tax Advantage Fund Series III, 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 and from income tax benefit available. For the purpose of investment by the fund, 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 capaitalization) on the National Stock Exchange of India at the time of investment. The fund will allocate 65%-100% of assets in equity and equity related securities of companies of micro-caps as defined in the objective invest upto 35%-100% of assets in other equity and equity related securities with high risk profile and invest upto 20% of assets in fixed income and money market securities with low to medium risk profile. The fund's performance will be benchmarked against Nifty Small Cap 100 Index. The fund will be managed by S Krishnakumar & Dwijendra Srivastava.

DSP BlackRock Healthcare Fund, DSP BlackRock Children’s Gift Fund, Axis Hybrid Fund Series 35 to 38, Principal Small Cap Fund, Sundaram Smart CNX 100 Equal Weight Fund, and HDFC Equity Opportunities Fund are expected to be launched in the coming months.