Eighteen mutual fund NFOs available this week

5paisa Research Team

Last Updated: 22nd March 2023 - 04:07 pm

At a time when the Indian equity IPO markets are still circumspect, the new fund offerings (NFO) market is seeing robust activity. For instance, in the current week, there are about 18 NFOs available for subscription across asset classes. This is one of the highest number of open NFOs at a single point of time. One reason could be that this is the year end and there is normally a lot of debt fund raising to make the best of the double indexing advantage. The second reason is also that investors are lapping up bond funds with slightly longer duration and less of active management.

Eighteen MF NFOs available this week

As per the latest AMFI report, a total of 18 new fund offerings are likely to be available during the current week. The key highlights are captured in the table below.

NFO Name	Open Date	Close Date	Scheme Objective
Axis FTP Series 114 (83 days)	17th March 2023	23rd March 2023	Higher returns via debt with maturity of less than or equal to 83 days
Axis S&P 500 ETF (Fund of Funds)	17th March 2023	23rd March 2023	Will replicate TRI of S&P 500 via FOF by investing in replicating ETFs
Bandhan US Treasury Bond 0-1 year FOF	10th March 2023	23rd March 2023	Index ETF investing in an index replicating the US Treasuries of less than 1 year maturity
Invesco India, Nifty G-Sec Sep-2032 index fund	16th March 2023	24th March 2023	The index fund will replicate returns of Nifty G-Sec Sep-2032 index before fees and expenses
Kotak Fixed Maturity Plan (FMP) Series 308	17th March 2023	27th March 2023	To generate income by investing in debt and money market instruments of less than scheme maturity
Kotak Fixed Maturity Plan (FMP) Series 309	17th March 2023	22nd March 2023	To generate income by investing in debt and money market instruments of less than scheme maturity
Kotak Fixed Maturity Plan (FMP) Series 310	20th March 2023	22nd March 2023	To generate income by investing in debt and money market instruments of less than scheme maturity
Kotak Nifty SDL Jul-2028 Index Fund	15th March 2023	23rd March 2023	Will track the Nifty SDLJul-2028 index by investing in SDLs of shorter maturity, prior to fees and expenses
Kotak Nifty Small Cap 50 Index Fund	16th March 2023	29th March 2023	Will replicate composition of Nifty Small Cap 50 index and match returns prior to fees and expenses
Kotak Silver ETF Fund of Funds (FOF)	13th March 2023	27th March 2023	Will look to generate returns by investing in units of Kotak Silver ETF to capitalize on precious metal prices
Mirae Asset Fixed Maturity Plan Series V Plan 3	22nd March 2023	27th March 2023	Generate income for unit holders via portfolio of debt and money market instruments
Mirae Asset Nifty SDL Jun-2028 Index Fund	20th March 2023	27th March 2023	Index fund will track the Nifty SDL Jun-2028 index pre-expenses and subject to tracking error
Nippon India Fixed Horizon Fund – XLV – Series 3	20th March 2023	23rd March 2023	Will invest in central and state government debt to generate returns and capital growth
NJ ELSS Tax Saver Scheme	13th March 2023	09th June 2023	Tax saving under Section 80C with 3 year lock-in via investing in equity and related instruments
SBI MF FMP Series 81 – 1157 days	21st March 2023	28th March 2023	Regular income and growth with limited interest rate risk by aligning maturities with term of fund
TRUSTMF FMP – Series II – 1196 days	16th March 2023	24th March 2023	Regular income and growth with limited interest rate risk by aligning maturities with term of fund
TRUSTMF FMP – Series III – 1198 days	21st March 2023	27th March 2023	Regular income and growth with limited interest rate risk by aligning maturities with term of fund
UNION FMP – Series 13 – 1114 days	21st March 2023	28th March 2023	Regular income and growth with limited interest rate risk by aligning maturities with term but no assurance

Date Source: AMFI

Here are some key takeaways from the above table capturing the 18 NFOs open during the current week.

Of the 18 NFOs above, there are no active equity funds. Predominantly, funds are from the debt segment and the equity funds are essentially index funds or index ETFs. After the global correction, the interest in global index ETFs appears to be back in vogue.
Despite being the last 2 weeks of the fiscal year, the tax savings schemes (ELSS) are few and far between. This could be due to the new tax regime (NTR) taking effect from 01st April 2023. This will largely do away with the need to save taxes through ELSS for investors up to an income threshold.
The focus on NFOs from index funds has been a phenomenon in the last few months. This can be attributed to the fact that there are no restrictions on the AMC on the number of NFOs on indices that can be launched.
Fixed maturity plans with a maturity of slightly over 3 years are normally popular in the last two weeks of the fiscal year. That is because, these funds get the benefit of double indexation by straddling across 4 financial years with maturity slightly more than 3 years.

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