Before getting on to the details on the active NFOs or new fund offering, here we put why NFOs are a good option to settle on. This can be precisely a new theme which the fund house or AMC is targeting say for instance Axis MF which is largely growth oriented has come up with a value fund offering to tap the opportunity. Nonetheless points around NFOs such as low cost with NAV at a meager Rs. 10 are just a fallacy to lure investors, infact the NFO entails a higher cost.
So, as of now 4 currently open NFOs are as below along with their key details:
1. Mirae Asset S&P 500 Top 50 ETF NFO:
This is an open-ended scheme replicating/tracking S&P 500 Top 50 Total Return Index. S&P 500 Top 50 includes 50 largest companies from S&P 500 index, one of the 3 major US index. So, investment in the scheme offers an investor an opportunity to park funds across 50 top Amercian companies.
Other relevant details:
Issue period: September 1- September 14
Minimum investment amount- Rs. 5000 and in multiples of Rs. 1 thereafter
Allotment price: offer for sale of units at 1/10000th of the S&P 500 Top50 Index on the date of allotment
Who can go for the Mirae Asset NFO?
Investors looking for diversification and those seeing further capital growth opportunity through exposure in international markets. There will be exposure provided to different sectors as well. This can also be a good bet to diversify in global markets at low cost and benefit from rupee depreciation.
2. Axis Value Fund NFO:
The proponent of growth investing has lately launched the Axis Value Fund primarily to take on the opportunity that is seen in the space because of the recent performance improvement of value stocks.
Typically the NFO, will work on the principle of value investing which suggest that the mutual fund will scout out for sectors or stocks that are available at cheaper valuation but over the course of time may see or have the potential for re-rating.
Offer period: September 2- September 16, 2021
Minimum investment amount: Rs. 5000
Benchmark- S&P BSE 200 TRI
Minimum SIP/STP for Quarterly frequency is Rs. 1,000
Minimum SWP for Quarterly frequency is INR 3,000
Exit Load - 1% if redeemed before 365 days and 0% if redeemed after.
-Long term capital appreciation
-Also, the fund will not lap up deep value or highly leveraged stocks.
-Not purely value and includes a mix of growth stock such that the fund does not underperforms when the market gets out of favour
-Quality portfolio with exposure across sectors as well as market cap.
"In the past 10 years, value has been a high-risk, low-return proposition-more volatile than growth and yet giving lower returns. Instead, our approach will take the health of the business account as well as its valuations. Jinesh Gopani will manage the fund for now and we have internal filters in place to create a universe of suitable companies for this fund. But if in the future we believe it needs a dedicated manager, we will appoint one," said Patni-head of products and alternatives, Axis Mutual Fund.
3. HSBC mid cap fund NFO:
Key details- September 6- September 20
Minimum lump sum - Rs. 5000
Minimum SIP- Rs. 1000 for 6 months
Exit load: Within 1 year 1%
Investments will be channelized in mid cap stocks and partially in small cap to generate alpha
Benchmark - Nifty Mid Cap 150 index TRI
Fund Manager- Mr. Ankur Arora
'4Q' investment approach will be made use of: Focus shall be on the quality of business, quality of management, quality of earnings, and quantum of earnings.
Who can invest in HSBC mid cap fund NFO?
As since the pandemic has struck in March 2020 and the financial crisis then, mid cap stocks have returned their glory, there may be seen higher returns over the long term. Nevertheless, higher return will come at a high risk given the fund deployed in relatively less mature companies.
4. Kotak Multicap fund NFO:
As per the mandate for multicap fund, a minimum of 25% each shall be deployed into small, mid and large cap. For the remaining, the fund's model will provide a light on when to hold a particular market cap in higher proportion and for how long.
Issue details- September 8-September 22, 2021
Minimum- Rs. 5000
Via SIP- Rs. 1000 for 6 months
NAV- Rs. 10 during NFO period
Exit load- Within 1 year-beyond 10% of investments-1% exit load
Benchmark- Nifty 500 Multicap 50:25:25 TRI
Who should invest in Kotak Multicap fund NFO?
This shall be a good option for investors who are in the process of building up their MF folio as the fund will provide apt exposure across m-capitalisation. Furthermore this can be a good option for those on the hunt to add
The above mentioned NFOs are not a call for investment in them but as being seen NFOs are raking in huge money and both AMCs as well as investors are capitalising on the current momentum, here is collated information on all the NFOs that are currently open.