NFONEST

July 2021

Five NFOs of various hues are open at present and find a place in the July 2021 GEMGAZE.   

Kotak Global Innovation Fund of Fund

Opens: July 8, 2021

Closes: July 22, 2021

Kotak Mutual Fund launched Kotak Global Innovation Fund of Fund, an open ended fund of fund investing in global stocks such as Amazon, Facebook, VISA, AstraZeneca, Netflix and so on. The primary investment objective of the scheme is to provide long-term capital appreciation by investing in units of Wellington Global Innovation Fund or any other similar overseas mutual fund schemes/ETFs. Being a Fund of Fund, this scheme will invest 95% of its assets in units of Wellington Global Innovation Fund and/or any other similar overseas mutual fund schemes/ ETFs. It will also invest up to 5% of its assets in debt and money market instruments in order to meet the liquidity requirement of the scheme. The underlying fund of the scheme is Wellington Global Innovation Fund. US based Wellington Management manages AUM of over US$ 1 trillion. The scheme will benchmark its performance to the MSCI All Country World Index TRI. The fund is managed by Mr. Arjun Khanna.

 

PGIM India Small Cap Fund

Opens: July 9, 2021

Closes: July 23, 2021

PGIM India Mutual Fund has launched PGIM India Small Cap Fund, an open-ended scheme which aims to achieve long-term capital appreciation by investing predominantly in small cap companies. PGIM India Mutual Fund’s performance will be benchmarked against Nifty Small Cap 100 TRI (Total Return Index). Mr. Aniruddha Naha is the equity fund manager for the scheme, Mr. Kumaresh Ramakrishnan is the debt fund manager for the scheme and Mr. Ravi Adukia will manage the overseas investments for the scheme.

Axis Floater Fund

Opens: July 12, 2021

Closes: July 26, 2021

Axis Mutual Fund has launched Axis Floater Fund, an open-ended fund predominantly investing in floating rate instruments and fixed rate instruments swapped for floating rate returns. The fund aims to navigate a possible rising interest rate environment. The fund will invest in a mix of high-quality instruments and AA issuers. It targets a portfolio average maturity of 6-18 months. The fund is suitable for investors looking to park short-term surplus funds or for those looking to limit the interest rate risks in their debt portfolio. Floating rate bond fund invests in floating rate bonds as and when the interest rate moves up. The idea is to offer the new adjusted rate which is higher than the existing papers to offer a higher interest. The scheme will benchmark its performance to the NIFTY Ultra Short Duration Debt Index. The fund is managed by Mr. Aditya Pagaria.

Tata Business Cycle Fund

Opens: July 16, 2021

Closes: July 30, 2021

Tata Mutual Fund has launched an open-ended equity scheme, Tata Business Cycle Fund. The scheme will follow business cycles-based investing theme. The investment objective of the fund is to generate long-term capital appreciation by investing with focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles. Under normal circumstances, 80% to 100% of the fund’s portfolio will be invested in equity and equity related instruments selected on the basis of business cycle. The scheme will invest 0% to 20% of its assets in other equity and equity related instruments, up to 20% of its assets can be invested in debt, money market instruments and Gold ETFs and 0% to 10% of its net assets may also be invested in units issued by REITs and in VITs. Tata Business Cycle Fund’s performance will be benchmarked against Nifty 500 TRI (Total Return Index). The fund will be managed by Mr Rahul Singh (equity), Mr Murthy Nagarajan (debt), and Mr Venkat Samala (overseas).

 

Trust Short Term Fund

Opens: July 20, 2021

Closes: August 3, 2021

Trust Mutual Fund has launched its third fund, Trust Mutual Fund Short Term Fund, an open-ended liquid scheme, which aims to build a portfolio of the highest-rated issuers for investors to benefit from the persistent steepness in the Yield Curve in the 1 to 3-year segment. The fund will invest in top quality securities having AAA rating with maturity of up to three years. The objective of the scheme is to provide reasonable returns at a high level of safety and liquidity through investments in high quality debt and money market instruments. The fund will follow a structured investment approach backed by unique methodology, with the objective of delivering consistent risk-adjusted returns. The robust methodology has been developed in collaboration with CRISIL$, the knowledge partner for the initial debt schemes of TRUST Mutual Fund. The highlights of the fund include focus on consistent risk adjusted returns in back testing of Model Portfolio by CRISIL, quality investible universe of filtered AAA on issuers, steepiness in the yield curve combined with roll down opportunity providing an opportunity to generate capital gains and some cushion against yield increase and current curve far steeper than historical averages providing better opportunities. The scheme will benchmark its performance to the CRISIL Liquid Fund Index. The fund will be managed by Mr. Anand Nevatia.

 

Kotak Nifty 100 Low Volume 30 ETF Fund of Fund, Kotak Nifty Alpha 50 ETF Fund of Fund, UTI Nifty Midcap 150 Quality 50 Index Fund, ICICI Prudential S & P BSE 500 ETF FOF, ITI Pharma and Healthcare Fund, TRUSTMF Fixed Maturity Plan, ITI Focused Equity Fund, ITI Flexi Cap Fund, ITI Banking and Financial Services Fund, TRUSTMF Overnight Fund, Union Innovation Fund, Kotak Consumption ETF, Kotak Midcap 50 ETF, Kotak MNC ETF, DSP Global Innovation Fund of Fund, Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 Index and Aditya Birla Sun Life Business Cycle Fund are expected to be launched in the coming months.