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A slew of mutual funds are planning to launch equity schemes. On Wednesday alone, four fund houses — UTI, BOI-AXA, Sundaram and Motilal Oswal — have filed draft papers for new fund offers (NFOs) with market regulator SEBI.
Sundaram Mutual Fund is launching Sundaram Equity Savings Fund. The investment objective of the scheme is to generate income by investing in debt and arbitrage opportunities in the cash and derivatives segment of the equity market, and capital appreciation through a moderate exposure in equity. “However, there can be no assurance that the investment objective of the scheme will be realised,” it said in the offer document.
The scheme will invest 65-90 per cent in equity and equity-related instruments (derivatives including index futures, stock futures, and index/stock options backed by underlying equity), while 15-40 per cent would be invested in unhedged equity positions, said the offer document. Fixed income and money market may have exposure of 10-35 per cent; the scheme may also invest up to 10 per cent in REITs/InvITs.
The benchmark for the product is 40 per cent Crisil Liquid Fund Index, 30 per cent Crisil Short Term Bond Fund Index and 30 per cent Nifty 50 Index. It will be managed by S Krishnakumar and Dwijendra Srivastava.
BOI-AXA is eyeing investors with an open-ended equity scheme, predominantly investing in small-cap stocks for its Small Cap Fund.
Minimum investment in equity and equity-related instruments of small-cap companies is 65 per cent of total assets, it said in the draft document.
The fund will track the Nifty Smallcap 100 Total Return Index as its benchmark. Alok Singh will manage the scheme.
T Rowe Price Funds
UTI Global Focused Growth Equity Fund aims to provide long-term capital appreciation by investing predominantly in units of T Rowe Price Funds (TRPF) SICAV — Global Focused Growth Equity Fund, an overseas fund mainly investing in a diversified portfolio of stocks.
The scheme aims to invest in companies that have the potential for above-average and sustainable rates of earnings growth and anywhere in the world, including emerging markets, the offer document said. While 95-100 per cent of the assets collected would be invested in TRPF SICAV Global Focussed Growth Equity Fund, it would also invest a maximum of 5 per cent in money market instruments. Kamal Gada will be the scheme’s fund manager.
Motilal Oswal Asset Management Company has filed draft red herring prospectus with SEBI for Motilal Oswal Nasdaq 100 Fund of Funds, an open-ended fund of funds scheme investing in Motilal Oswal Nasdaq 100 ETF.
The investment objective of the scheme, which will be managed by Ashish Agrawal, is to seek returns by investing in units of Motilal Oswal Nasdaq 100 ETF.
“The AMC/Underlying Scheme does not make any judgments about the investment merit of Nasdaq 100 Index, nor will it attempt to apply any economic, financial or market analysis,” it said in the document.
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