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Nilanjan Dey

Kolkata May 13 For mutual fund investors, the NFO (new fund offer) scene has again turned bubbly with quite a few offers vying for attention. While two of these are by first-timers JP Morgan and AIG, the new arrivals also include funds brought in by SBI and HDFC and capital protection-oriented offers worked out by Franklin Templeton and DWS. Offers that are closing for subscription towards the end of the month include DSP Merrill Lynch MF's close-ended fund for micro-cap stocks.

The NFO scenario, as investment circles indicate, is set to become even more crowded in the weeks ahead, thanks to the likely arrival of a series of offers. These are expected to include close-ended funds that various fund houses intend to roll out in the coming days.

What's on now

Among the offers that are currently open is Birla MF's Birla Sun Life Long Term Advantage Fund - Series I, which has extended the NFO period by a few days. The new closing date is set for the second week of the month.

Some of the players concerned have tried to position their wares as differently as possible, it is pointed out. JP Morgan India Equity Fund's catchline refers to the product being a "core" investment. AIG India Equity Fund, on the other hand, specifically spells out that it will have no bias in terms of sectors or market capitalisations.

Both international players suggest that the Indian market will be able to absorb new `product manufacturers' and then leave room for more. Mr Krishnamurthy Vijayan, CEO, JP Morgan Asset Management India, felt the local market is just developing, a trend influenced by a number of positive factors.

Mr Saurabh Sonthalia, CEO, AIG Global Asset Management Co (India), is of the view that the market here will sustain committed players.

As investors turn more conscious of quality, they will become choosier, he said, adding that the choices before investors will only increase over time.

NFOs that are closing sooner include Franklin Templeton MF's capital protection-oriented product, which provides two plans, three and five years. Like others of its kind, this aims at investors who look for capital protection as well as returns that are somewhat higher than what may be secured from normal fixed-income alternatives.

Piling up

A number of offer documents have been lately filed with SEBI, a set that includes fixed maturity plans worked out by the likes of ICICI Prudential, Standard Chartered and Lotus. Among the equity funds that have been conceived in recent weeks are UTI India Lifestyle, UTI Flexi Cap and Lotus Nifty Index Plus Fund.

Some of the other recent filings are by DWS Interval Fund, Tata Treasury Manager Fund, HDFC Prudence Dynamic Fund and Principal Money at Call Fund.

More Stories on : New Fund Offer | Mutual Funds

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