AMCs plan to launch more equity funds

Our Bureau Chennai | Updated on February 16, 2021 Published on February 15, 2021

Some eye global stocks; multi-cap, business cycle themes are favourites too

Over half-a-dozen mutual fund houses are planning to launch new schemes with novel ideas to cater to a wide category of investors. Various asset management companies (AMCs) including Nippon India , Axis Mutual Fund, ICICI Prudential, Mahindra Manulife, Mirae, SBI Mutual Fund and Tata Mutual Fund have filed scheme information documents (SIDs) with market regulator SEBI to launch new fund offers.

Betting on bull market

Since February 1, AMCs have filed documents for 17 schemes (for both equity and debt) with market regulator Securities and Exchange Board of India.

According to experts, fund houses are launching new schemes to capitalise on the market momentum, as equities across-the-globe are firmly under a bull grip with majority of them hitting new highs with almost each passing day. Also, some are trying to attract investors who exited in recent rally, they added.

“Domestic funds are seeing redemptions post-Covid pandemic, as some investors cashed out. AMCs are launching new schemes to win back some of them,” a Chennai-based market expert said.

The schemes mainly concentrate on equities with various themes. For instance, Tata Mutual’s Business Cycle Fund will invest in equity and equity related securities which will be identified based on various trends in the business cycle.

“As such, the scheme will have the flexibility to invest across sectors and market cap. Performance of the scheme will be benchmarked with that of Nifty 500 TRI,” it said.

Focussing global markets

Mirae Asset Global Nextgen Tech Fund of Fund will provide long-term capital appreciation from a portfolio investing predominantly in units of US listed equity ETFs, which are based on technology centric themes.

The performance of the scheme will be benchmarked to the performance of the Nasdaq 100 INDEX.

Mirae Asset US FANG Plus ETF is based on the NYSE FANG+ Index, which is an equal-dollar weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of 10 highly-traded growth stocks of technology and tech-enabled companies such as Facebook, Apple, Amazon, Netflix, and Alphabet’s Google.

Another fund house targeting global market is Nippon India Mutual Fund. It plans to launch S&P Europe 350 Index fund, whose constituents include ASML Holdings, Diageo Plc, HSBC Holdings, LVMH-Moet Vuitton, Nestle SA, Novaratis AG, Roche Holdings AG, SAP SE, Siemens AG, Total SA and Unilever.

Others funds planning launches include ICICI Prudential (Alpha Low Vol 30 FoF, Healthcare ETF), Edelweiss (Nifty PSU Bond Plus SDL Index Fund), ITI (Value Fun), Mahindra Manulife (Asia Paicfic REITS Fund), SBI (CPSE Plus SDL ETF and Midcap 150 index Fund) and Axis Mutual Fund (2050 Gilt ETF and MultiCap).

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Published on February 15, 2021
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