New Fund Offers This Week: Index Funds, ETFs And Business Cycle Funds In Focus

There has been 15 new fund offer launches in last month bringing inflow worth Rs 16,565 crore into the mutual fund industry. These fund offers have been spread across various sectors and categories.

"Most investors need not invest in NFOs. Funds need a six- to nine-month performance period to evaluate," said Salonee Sanghavi, founder of My Wealth Guide.

She only recommends investing in an NFO only if the scheme has a new segment or strategy to offer.

"Every NFO should be looked at with the question of purpose. How does it benefit the portfolio," said Kalpen Parekh, president of DSP Mutual Fund.

These fund offers may not always fit an investors portfolio as these could be products that the fund house is pushing out according to Parekh.

It is important for fund houses to time their launch their NFO's during pockets of underperformance in spaces that are under-valued, he said.

Here is all you need to know about the new fund offers that are open offered through the week:

The scheme seeks to generate long-term capital appreciation by investing in a diversified portfolio of equity, debt and money market Instruments, units of Gold Exchange Traded Funds (ETFs) and / or Silver ETFs and units of REITs and InvITs as per the asset allocation pattern of the scheme.

Open under the hybrid scheme category, this multi asset allocation fund is launching today. The NFO will close on 3 September and the minimum subscription amount is Rs 1,000.

There is an exit load of 1% if units are redeemed/switched out before completion of 15 days from the date of allotment. No exit charges apply if redeemed or switched out after completion of 15 days from the date of allotment of units.

The objective of this fund is to provide a combination of regular income and high liquidity by investing primarily in a mix of short-term debt and money market instruments.

The fund is in the debt category and is an ultra-short-duration fund. Launching on 19 August, the fund closes on 28 August. The minimum subscription amount is Rs 5,000.

The objective of this passive fund is to provide returns that, before expenses, correspond to the total returns of securities as represented by the Nifty India Defence Total Return Index. This fund is the second index fund that tracks the broader markets in the defence space.

The new fund offer for this index fund was launched on 9 August and closes on 23 August. The minimum subscription amount is Rs 500.

The investment objective of the scheme is to replicate the Nifty Bank Index by investing in securities of the Nifty Bank Index in the same weightage with the aim of providing returns before expenses that track the total return of the Nifty Bank Index.

The index fund was launched by the fund house on 8 August and will close on 22 August.

There is an exit load of 0.25% if the redemption is done on or before 15 days from the allotment. There is no exit load if redemption is done after 15 days. The minimum subscription is Rs 1,000 and above.

The objective of the scheme is to generate long-term capital appreciation by investing in equity through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.

This scheme under the sectoral and thematic categories was launched on August 9 and will close on August 23. The minimum subscription amount is Rs 5,000.

The scheme seeks to provide returns that, before expenses, correspond to the total return of the underlying index (Nifty Top 10 Equal Weight TRI).

Launched under the ETF category, the fund offer was launched on 16 August. The offer closes on 30 August. The minimum subscription amount is Rs 5,000.

For Creation Unit Size, no exit load will be levied on redemptions made by market makers or large investors directly with the Fund in Creation Unit Size. For others, no units of the DSP Nifty Top 10 Equal Weight ETF other than creation unit size cannot be directly redeemed with the fund.

These units can be redeemed (sold) on a continuous basis on the stock exchange(s) during the trading hours on all trading days.

The objective of the fund is to generate returns that are commensurate (before fees and expenses) with the performance of the Nifty500 Multicap 50:25:25 Index.

The scheme under the category of index fund, launched on 6 August, will close today.

There will not be any entrance or exit load that is levied. The minimum subscription amount is Rs 100.

The investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty Top 10 Equal Weight Index.

The new fund offer for this index fund opened on 16 August and will close on 30 August. The minimum subscription amount is Rs 100.

There will not be any exit load levied in the event of a switch of investments from the direct plan to the regular plan and vice versa.

The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty500 Multicap 50:25:25 Total Return Index.

The new fund offer for this exchange-traded fund was launched on 12 August and will close on 26 August. The minimum subscription amount is Rs 5,000 and above and there will be no entrance and exit charges for the scheme.

The objective of the scheme is to achieve long-term capital appreciation by investing in the equity of companies, with a focus on riding business cycles through allocation between sectors and stocks at different stages of business cycles.

Under the sectoral and thematic categories, the fund offer was opened on 7 August and will close on 21 August.

There is an exit load of 1% if redeemed on or before three months from the date of allotment. There will be no charges levied for the redemption made three months after the allotment.

The minimum subscription amount is Rs 500 and above.

The investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty India Defence Total Return Index.

In the ETF category, this scheme is launched on 19 August and closing on 21 August. The minimum subscription amount for the NFO is Rs 500 and above.

The investment objective of the scheme is to provide returns, before expenses, that are commensurate with the performance of the Nifty 200 Alpha 30 Index (TRI).

The NFO for this index fund was launched on 19 August and will close on 2 September. The minimum subscription for the scheme is Rs 5,000.

There is no entry load but there is an exit load of 0.25% of the applicable NAV if redeemed on or before 15 days from the date of allotment.

Exit load (if any) charged to the unit holders by the Mutual Fund on redemption (including switch-out) of units shall be credited to the scheme net of Goods and Services Tax.