NFONEST

May 2018

In the financial year 2017-18, new fund offers of open-ended equity schemes raised Rs.6,612 crore, according to AMFI data. The funds mobilised by new fund offers increased by 664% or Rs.5,747 crore in the last financial year. AMFI data shows that while the industry launched 12 open-ended equity funds last fiscal, seven open-ended schemes were launched in the preceding fiscal. Although the numbers look large, the total collection from NFOs is hardly 6% of the overall equity flows. Many fund houses launch new open-ended schemes to complete their products basket. However, not all new schemes have collected significant inflows. A lion’s share of these inflows has come to Axis Mutual Fund. Axis Mutual Fund launched two funds – Axis Dynamic Equity Fund and Axis Multicap Fund – last fiscal. While the fund house collected Rs.1,700 crore during NFO of Axis Dynamic Equity Fund, Axis Multicap Fund collected over Rs.2,000 crore.

New Fund Offers of various hues adorn the May 2018 NFONEST.

IDBI Banking and Financial Services Fund

Opens: May 14, 2018

Closes: May 28, 2018

IDBI Mutual Fund has launched IDBI Banking and Financial Services Fund, a scheme focused on BFSI sector. According to SEBI rules, the scheme will be required to invest 80-100% of its assets in the banking and financial services sector. It can invest the balance 0-20% in the stocks of other types of companies or in debt. The scheme will be benchmarked against the Nifty Financial Services Index which is dominated by the HDFC twins (HDFC and HDFC bank). These two companies accounted for about 47% of the index on 30th April 2018. They are followed by ICICI Bank, Kotak Mahindra, SBI and Axis Bank. The holdings show a heavy private sector bank tilt. The scheme will be managed by Uma Venkatraman who also manages IDBI India Top 100, IDBI Small Cap and IDBI Equity Savings Fund.

SBI Dual Advantage Fund – Series XXVIII

Opens: May 14, 2018

Closes: May 28, 2018

SBI Mutual Fund has launched the SBI Dual Advantage Fund-Series XXVIII, a close ended hybrid scheme. The investment objective of the scheme is to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the scheme. The secondary objective is to generate capital appreciation by investing a portion of the scheme corpus in equity and equity related instruments. The scheme’s performance will be benchmarked against CRISIL Hybrid 85+15 - Conservative Index and its fund managers are Rajeev Radhakrishnan, and Ruchit Mehta.

Canara Robeco Dual Advantage Fund – Series 1

Opens: May 18, 2018

Closes: June 1, 2018

Canara Robeco Mutual Fund has launched the Canara Robeco Dual Advantage Fund Series 1, a close ended income scheme. The investment objective is to generate income/capital appreciation from a portfolio constituted of debt and money market instruments for regular returns and equity and equity-related instruments for capital appreciation. The scheme’s performance will be benchmarked against CRISIL Hybrid 85+15 - Conservative Index and its fund managers are Cheenu Gupta and Suman Prasad.

Sundaram Long Term Tax Advantage Fund – Series V to VI, Tata Balanced Advantage Fund, Essel Multi Cap Fund, UTI Equity Savings Fund, Sundaram Emerging Small Cap Series – V to VII, HDFC Next 50 ETF, Sundaram Money Market Fund, UTI Floater Fund, Franklin India Equity Savings Fund, Aditya Birla Sunlife Resurgent India Fund – Series 9 & 10, Sundaram Services Fund and SBI ETF Momentum are expected to be launched in the coming months.