Notwithstanding the volatility in equity markets, about six new fund offers from leading mutual fund houses will open for subscription this month.

The new offers come after a lull with the fund houses rejigging their existing schemes to meet the new norms on Categorisation and Rationalisation of Mutual Fund Scheme.

Earlier this year, SEBI had asked fund houses to rework their existing schemes to have only one fund in each category to make things simple and easier for investors to understand.

Six new equity-based fund offers that would be available for subscription this month include Axis Growth Opportunities Fund, Invesco India Small Cap Fund, Tata Small Cap Fund, L&T Focused Equity Fund, ICICI Pru Manufacturing in India Fund and Mahindra Rural Bharat and Consumption Yojana.

Sandeep Bhushetty, Director, Chatur Investment, said given the current volatility in the equity market, investors should consider investment through the mutual fund route and new fund offering of Mahindra Rural Bharat and Consumption Yojana is expected to benefit from the structural shift and growth in rural India.

India is expected to log higher GDP and strong income growth with improvement in consumption in rural India. Investments in well-diversified equity portfolios of companies with rural focus would help investors seeking long-term gains, he added.

ICICI Prudential Mutual Fund targets to capture the increasing contribution of manufacturing in India’s GDP. Share of the manufacturing sector in GDP has increased to 18 per cent from the average of 14-16 per cent registered over the last four decades.

Nimesh Shah, Managing Director, ICICI Prudential Asset Management Company, said India is poised to emerge as a significant manufacturing hub in order to cater to rising domestic demand. Positive policy announcements by the government and well-designed development programmes in various sectors of manufacturing are likely to lead to further growth in coming years, he said.

Related Topics
comment COMMENT NOW