Eight NFOs are open for subscription this week

For the week commencing on 22nd April 2023, there are 8 NFO or new fund offerings of mutual funds available for investors. These funds range from a wide spectrum of equity, debt, and multi-asset funds. Here is a quick look at the eight funds available for subscription this week.

1. Baroda BNP Paribas Value Fund

This fund comes from the house of Baroda BNP Paribas Mutual Fund. This NFO is a pure equity open ended fund with the objective of generating long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. The fund proposes to follow a value investment strategy of identifying deep value stocks in the market at reasonable prices with a substantial moat or margin of safety. However, being an equity linked scheme, there can be no assurance of returns or even any assurance that the fund would be able to meet its core objectives. It will add to the platter of equity funds of the AMC.

The new fund offering (NFO) opens for subscription on 17th May 2023 and closes for subscription on 31st May 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load but exit load will be charged if held for a shorter period than the threshold. The core intent of the fund is to beat the market and earn above market returns so as to generate alpha for the investors in the fund through its value investment approach. The minimum subscription amount in the NFO will be Rs5,000 per application.

2. HDFC Defence Fund

This fund comes from the house of the reputed HDFC Asset Management Company and is the third largest AMC in India in terms of assets under management (AUM). This NFO is a pure equity open ended fund with the objective of generating long-term capital appreciation from a diversified portfolio of predominantly equity investments in the defence and defence related sectors. The fund proposes to follow a policy of sticking largely to the stocks in the Nifty Defence index and companies included in the list of the Society of Indian Defence Manufacturers (SIDM) and who stand to benefit from the indigenization of defence production in India. However, being an equity linked scheme, there can be no guarantee of returns or even any assurance that the fund would be able to meet its core objectives. The universe of the fund would be limited due to its very granular objective.

The new fund offering (NFO) opens for subscription on 19th May 2023 and closes for subscription on 02nd June 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load but exit load will be charged at the rate of 1% if the investor redeems or switches out of the fund within a period of 1 year from date of purchase. The core intent of the fund is to beat the market and earn above market returns so as to generate alpha for the investors in the fund through its very granular sectoral approach. The minimum subscription amount in the NFO will be Rs100 per application.

3. Kotak FMP – Series 312

This fund comes from the house of Kotak Mahindra Asset Management Company (Kotak AMC) and is among the top 5 AMCs in India in terms of assets under management (AUM). This NFO is a closed ended fund with the objective of generating income by investing in a portfolio of debt and money market securities. Being a fixed maturity debt plan, the fund will try to align the maturity profile of its holdings to the maturity profile of the fund. However, being a market linked scheme, there can be no guarantee of returns or even any assurance that the fund would be able to meet its core objectives. Like in any FMP, the returns are indicative, although they cannot be taken as assured.

The new fund offering (NFO) opens for subscription on 22nd May 2023 and closes for subscription on 24th May 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund being a closed ended fund does not offer sale and redemption on daily NAV based prices. However, the fund will be listed and can be traded, subjected to liquidity being available. The minimum subscription amount in the NFO will be Rs100 per application. The investment approach would be conservative.

4. NJ ELSS Tax Saver Scheme

This fund comes from the house of NJ Asset Management Company which is a recent entrant but has been a key player in mutual fund distribution for a long time. This NFO is a pure equity open ended fund with the objective of generating long-term capital appreciation from a diversified portfolio of predominantly equity investments. Being a tax saving fund, there will be the benefit of Section 80C available to investors within the limit of Rs1.50 lakhs per year. However, the ELSS fund will entail a minimum lock-in period of 3 years from the date of investment. However, being an equity linked scheme, there can be no guarantee of returns.

The new fund offering (NFO) had opened for subscription on 13th March 2023 and closes for subscription on 09th June 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load and exit load will not be applicable due to the minimum 3 year lock in criterion. The core intent of the fund is to beat the market and earn above market returns so as to generate alpha for the investors. The minimum subscription amount in the NFO will be Rs500 per application and in multiples of Rs500 thereof.

5. Quant Business Cycle Fund

Quant is also a recent entrant in the business but some of its funds in the ELSS, mid-cap and small cap categories have been among the top performers. This NFO is a pure equity open ended fund with the objective of generating long-term capital appreciation by riding the business cycles accurately. However, being an equity linked scheme, there can be no guarantee of returns.

The new fund offering (NFO) opened for subscription on 12th May 2023 and closes for subscription on 25th June 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load and exit load will be applicable if holding threshold is not met. It is more of a thematic alpha fund. The minimum subscription amount in the NFO will be Rs5,000 per application.

6. SBI S&P BSE Sensex Fund

This comes from the largest AMC in India. The investment objective of the scheme is to replicate the composition of the S&P BSE Sensex Index and to generate returns that are commensurate with the performance of the S&P BSE Sensex Index, subject to tracking errors. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. The fund will try and minimize tracking errors.

The new fund offering (NFO) opened for subscription on 18th May 2023 and closes for subscription on 24th May 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load and exit load will be applicable if holding threshold is not met. It is more of a passive index fund. The minimum subscription amount in the NFO will be Rs5,000 per application and in multiples of Rs1 thereof.

7. UTI Nifty 50 Equal Weight Index Fund

This comes from the oldest AMC in India. The investment objective of the scheme is to provide returns that, before expenses, corresponds to the total return of the securities as represented by the underlying index, subject to tracking error. However, there can be no guarantee or assurance that the investment objective of the scheme will be achieved. The fund will try and minimize tracking errors.

The new fund offering (NFO) opened for subscription on 22nd May 2023 and closes for subscription on 05th June 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load or exit load. It is more of a passive index fund. The minimum subscription amount in the NFO will be Rs5,000 per application and in multiples of Rs1 thereof.

8. UTI S&P BSE Housing Index Fund

This is the second fund coming from the oldest AMC in India. The investment objective of the scheme is to provide returns that, before expenses, corresponds to the total return of the securities as represented by the underlying index, subject to tracking error. However, there can be no guarantee or assurance that the investment objective of the scheme will be achieved. The fund will try and minimize tracking errors.

The new fund offering (NFO) opened for subscription on 22nd May 2023 and closes for subscription on 05th June 2023. That would be the earliest closing date and it could be extended if the situation so demands. The fund will not have any entry load or exit load. It is more of a passive index fund. The minimum subscription amount in the NFO will be Rs5,000 per application and in multiples of Rs1 thereof.