5paisa Research Team
by
5paisa Research Team
18th Dec 2024
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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