Nippon India Nifty Bank Index Fund
Nippon India Nifty Bank Index Fund is an open-ended scheme replicating/tracking Nifty Bank Index. The new fund offer or NFO of the scheme is open for subscription and it will close on February 16. The investment objective of the scheme is to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty Bank Index before expenses, subject to tracking errors. The scheme will be benchmarked against Nifty Bank TRI.
The minimum application amount is Rs 1,000 and in multiples of Re 1 thereafter. The scheme will be managed by Himanshu Mange.
The scheme will invest 95-100% in securities constituting Nifty Bank Index and 0-5% in cash and cash equivalents and money market instruments, reverse repo and / or TriParty Repo on government securities or treasury bills and/or units of money market / liquid schemes.
Nippon India Nifty IT Index Fund
Nippon India Nifty IT Index Fund is an open-ended scheme replicating/tracking Nifty IT Index. The new fund offer or NFO of the scheme is open for subscription and it will close on February 16. The investment objective of the scheme is to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty IT Index before expenses, subject to tracking errors. The scheme will be benchmarked against Nifty IT TRI.
The minimum application amount is Rs 1,000 and in multiples of Re 1 thereafter. The scheme will be managed by Himanshu Mange.
The scheme will allocate 95-100% in securities constituting Nifty IT Index and 0-5% in cash and cash equivalents and money market instruments, reverse repo and / or Tri-Party Repo on government securities or treasury bills and/or units of money market / liquid schemes.
Bajaj Finserv Large and Mid Cap Fund
Bajaj Finserv Large and Mid Cap Fund is an open ended equity scheme investing in both large cap and mid cap stocks. The new fund offer or NFO of the scheme will open for subscription on February 6 and it will close on February 20.
The investment objective of the scheme will be to generate long-term capital appreciation by investing in a diversified portfolio of equity and equity related securities, predominantly in large and mid-cap stocks from various sectors. The fund manager may also seek participation in other equity and equity related securities. The scheme will be benchmarked against Nifty Large Midcap 250 TRI.
The minimum application amount will be Rs 500 and in multiple of Re 1. The scheme will be managed by Nimesh Chandan and Sorbh Gupta (equity investments), Siddharth Chaudhary (debt investments).
The scheme will allocate 35-65% in equity and equity related instruments of large cap and mid cap companies, 0-30% in equity and equity related instruments other than large and mid cap companies, 0-30% in debt instruments and money market instruments and units of mutual fund schemes, and 0-10% in units issued by REITs and InvITs.
SBI Energy Opportunities Fund
SBI Energy Opportunities Fund is an open-ended equity scheme following the energy theme. The new fund offer or NFO of the scheme will open for subscription on February 6 and it will close on February 20.
The investment objective of the scheme is to provide investors with opportunities for long-term capital appreciation by investing in equity and equity related instruments of companies engaging in activities such as exploration, production, distribution, transportation and processing of traditional and new energy including but not limited to sectors such as oil and gas, utilities and power. The scheme will be benchmarked against Nifty Energy TRI.
The scheme will allocate 80-100% in equity and equity related instruments of companies engaged in energy (traditional & new) and allied business activities theme (including equity derivatives), 0-20% in other equity and equity related instruments (including equity derivatives), 0-20% in debt securities (including securitized debt & debt derivatives) and money market instruments including tri-party repos, 0-20% in units of mutual fund schemes (including domestic & overseas ETFs), and 0-10% in units issued by REITs and InvITs.
The minimum application amount for both the schemes will be Rs 5000 and in multiples of Re 1. The schemes will be managed by Tanmay Desai, Pradeep Kesavan (overseas investments).
Bank of India Multi Asset Allocation Fund
Bank of India Multi Asset Allocation Fund is an open-ended scheme investing in equity, debt, and Gold ETF. The new fund offer or NFO of the scheme will open for subscription on February 7 and it will close on February 21.
The investment objective of the scheme is to seek long-term capital growth by predominantly investing in equity and equity related securities, debt and money market instruments and Gold ETF.
The scheme will be benchmarked against 37.50% of Nifty 500 TRI + 50% of Nifty Composite Debt Index + 12.50% of Domestic Prices of Gold. The scheme will be managed by Alok Singh and Mithraem Bharucha.
The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter. The scheme will invest 35-40% in equity and equity related instruments, 45-55% in debt and money market instruments, 10-15% in Gold ETF, and 0-10% in units issued by REITs and INVITs.
HSBC Multi Asset Allocation Fund
HSBC Multi Asset Allocation Fund is an open-ended scheme investing in equity and equity related instruments, debt and money market securities and Gold / Silver ETFs. The new fund offer or NFO of the scheme will open for subscription on February 8 and it will close on February 22.
The investment objective of the scheme is to generate long-term capital growth and generate income by investing in equity and equity related instruments, debt and money market securities and Gold / Silver ETFs.
The scheme will be benchmarked against S&P BSE 200 TRI (65%) + NIFTY Short Duration Debt Index (20%) +Domestic Price of Gold (10%) +Domestic Price of Silver (5%). The scheme will be managed by Cheenu Gupta (for equity investments), Dipan Parikh (for Gold / Silver ETFs), Mahesh Chhabria (for debt investments), Sonal Gupta (for foreign investments).
The minimum application amount will be Rs 5,000 per application and in multiples of Re 1 thereafter. The minimum application amount for weekly and monthly SIP will be Rs 500 and in multiples of Re 1 thereafter with minimum 12 instalments.
Should you invest in these NFOs?
ETMutualFunds believes that investors should invest in an NFO only if it is offering something unique or something extra to already available options. Otherwise, they are better off with an existing scheme with a long, consistent performance record.
Nippon India Nifty Bank Index Fund is an index fund dedicated to the banking sector. There are around three schemes in the category but only one scheme – Motilal Oswal Nifty Bank Index Fund – has a performance record of around three years. The scheme offered 9.87% in the three year horizon.
Nippon India Nifty IT Index Fund is an index fund dedicated to the IT sector. There are around three schemes in the category. However, these schemes are relatively new. Only one scheme – ICICI Prudential Nifty IT Index Fund – has a performance record of one year. The scheme offered 23.25% in the one year horizon.
Bajaj Finserv Large and Mid Cap Fund is a large & mid cap fund. There are around 28 schemes in the large & mid cap category. Around 21 schemes have a performance record of five years. Quant Large & Mid Cap Fund, the topper in the category, offered 24.94% in the five year horizon. Two schemes offered around 21%. Three schemes offered around 20%. Around seven schemes gave 19%.
SBI Energy Opportunities Fund is a scheme dedicated to the energy sector. There are two schemes based on the energy sector. These two schemes – DSP Natural Resources & New Energy Fund and Tata Resources & Energy Fund – have a performance record of seven years. DSP Natural Resources & New Energy Fund and Tata Resources & Energy Fund gave 15.43% and 16.31% respectively. We do not recommend thematic/sectoral schemes to individual investors with moderate corpus. These schemes can be used by experienced investors with large corpus to diversity. However, an existing scheme with a proven track record would be a better bet.
Bank of India Multi Asset Allocation Fund and HSBC Multi Asset Allocation Fund are multi asset allocation funds. There are around 19 schemes in the multi asset allocation category. Around six schemes have a performance record of around five years. Quant Multi Asset Fund offered the highest return of around 26.18% in a five-year horizon. ICICI Prudential Multi-Asset Fund gave 19.48%. HDFC Multi-Asset Fund offered 14.17%. SBI Multi Asset Allocation Fund gave 13.73%. UTI Multi Asset Allocation Fund and Axis Multi Asset Allocation Fund gave 13.01% and 12.50% respectively.
