Eighteen mutual fund NFOs available this week

No image 5paisa Research Team

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

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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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