A host of fund houses including Mahindra Mutual, Larsen & Toubro, Kotak Mutual Fund and Edelweiss Asset Management are launching equity schemes with different themes.

Rural-centred

With the street talk that Union Budget 2018 will focus on rural population, Mahindra Mutual Fund has filed a draft paper for a new fund offering with market regulator SEBI for Mahindra Rural Bharat Yojana, an open-ended equity fund, betting on the rural India theme.

“The investment objective of the scheme is to provide long-term capital appreciation by investing predominantly in equity and equity-related instruments of entities engaged in and/ or expected to benefit from the growth in rural India,” the fund house said in the DRHP.

The NFO of Kotak India Growth Fund Series 4, which is open till February 12, will invest 80-100 per cent across large-, mid- and small-cap stocks. Besides, the fund has a put option strategy, through which in a declining market the scheme would seek to limit the downside by purchasing around three years at-the-money Nifty 50 put options.

Eyes on recently-listed cos

The minimum amount for investment in the fund is ₹5,000, and thereafter in multiples of ₹10.

Edelweiss Maiden Opportunities Fund — Series 1, a three-year close-ended equity fund, is aiming to invest in recently-listed companies and upcoming listings. The issue opens for subscription on February 2 and closes on February 16.

The investment objective of the scheme is to provide capital appreciation by investing in equity and equity-related securities of companies across market capitalisations, which are new in the sector, early in their respective growth-stages and are poised to benefit from the India growth story in the long term, according to its offer paper. The fund endeavours to protect the downside risk by hedging through long-dated put options.

The scheme is appropriate for investors who have a high risk-appetite and understand the risks involved, as the investment strategy of the investment manager may be an aggressive approach to optimise the objective of the scheme, the fund house said in the offer document.

L&T Emerging Opportunities Fund — Series I, launched on Monday, is also a close-ended equity scheme. It plans to invest 65-100 per cent in equity and equity-related securities of small-cap stocks and 0-35 per cent in equity and equity-related securities of companies other than small-caps. The fund has a tenure of 1,151 days from the date of allotment.

Underlying index theme

SBI Mutual Fund has also filed papers with SEBI for an open-ended exchange-traded fund — SBI-ETF Sensex Next 50.

The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error.

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