Want to Invest in NFOs? Bet on these Upcoming MF Offers
Last Updated : March 17, 2017, 12:50 p.m.
When the discussion on mutual fund takes centre stage, we invariably come up with a term NFO, which stands for New Fund Offer. You may be aware of Initial Public Offer (IPO), a direct offer by the company to subscribe to its shares that can be traded in the stock exchange later. Similarly, mutual fund companies launch a one-time subscription offer via NFO. In this series, some companies have filed NFO application with the Securities and Exchange Board of India, the market regulator, in August, 2016. The list comprises Sundaram Smart CNX 100 Equal Weight Fund, Reliance Dual Advantage Fixed Tenure Fund X (Plan A-Plan F), Principal Cap Fund, HDFC Fixed Maturity Plans- Series 37. Let's discuss all these offers one by one so that it will be easy for you to choose the right option by the time subscription comes.
Sundaram Smart CNX 100 Equal Weight Fund
This is an open-ended index linked equity scheme specifically designed for those who look to build on their invested capital over the long-term. It is expected to offer returns that correspond to those of CNX 100 Equal Weighted Index, subject to tracking error.
Scheme Details
| Scheme Particulars | Scheme Information |
|---|---|
| Scheme Name | Sundaram Smart CNX 100 Equal Weight Fund |
| Scheme Type | open-ended index linked equity scheme |
| New Offer Period | Not specified yet. But the duration of the offer will not be more than 15 days |
| New Fund Offer Price | Rs 10 per unit. The value of each unit of the scheme would most probably equal to 1/1000th of the value of CNX Equal Weighted Index |
| Investment Objective | Index in the same proportion to that of the index. |
| It aims to offer returns (before fees and expenses) in line with the performance of the underlying index. However, it is subject to tracking errors. | |
| Asset Allocation | Equity & Equity Derivatives- 95%-100%, Debt Instruments- 0%-5% |
| Benchmark | CNX 100 Equal Weighted Index |
| Sponsor | Sundaram Finance Limited |
| Minimum Investment Amount Required for Application | Rs 5,000 and multiples of Re 1 afterward |
| Minimum Amount Required for Additional Purchase | Rs 500 and multiples of Re 1 afterward |
| Minimum Redemption Amount | 50 units or Rs 500, whichever is lower |
| Minimum Amount Required for SIP | Weekly- Rs 1,000, Monthly-Rs 250, Quarterly-Rs 750 |
| Plans Available | Regular, Direct |
| Entry Load | NIL |
| Exit Load | NIL |
Reliance Dual Advantage Fixed Tenure Fund X (Plan A-Plan F)
The fund is envisaged to offer good returns and growth over short, medium and long-term. It will look to minimize the effects of volatility in interest rate by investing in debt, money market and G-sec instruments maturing on or before the date of maturity of the scheme.
Scheme Details
| Scheme Particulars | Scheme Information |
|---|---|
| Scheme Name | Reliance Dual Advantage Fixed Tenure Fund X (Plan A-Plan F) |
| Scheme Type | Close-ended Hybrid Scheme |
| New Offer Period | 12 months-61 months from the allotment date |
| New Fund Offer Price | Rs 10 per unit. |
| Investment Objective | To offer good returns and growth over short, medium and long-term. Seeks to generate returns and reduce the effect of interest rate volatility. |
| Asset Allocation | For 12 months to13 months- 90%-95% in debt securities and 5%-10% in equity instruments |
| From 14th month to 37th month- 65%-95% in debt securities, 30% in money market instruments and 5%-20% in equity instruments | |
| From 38th month to 61 months- 70%-95% in debt securities, 25% in money market instruments and 5%-30% in equity instruments | |
| Benchmark | CRISIL MIP Blended INDEX |
| Sponsor | Reliance Capital Limited |
| Minimum Investment Amount Required for Application | Rs 5,000 and multiples of Re 1 afterward |
| Minimum Amount Required for Additional Purchase | Rs 500 and multiples of Re 1 afterward |
| Minimum Redemption Amount | 50 units or Rs 500, whichever is lower |
| Minimum Amount Required for SIP | Not specified yet |
| Scheme Options | Growth, Dividend Payout |
| Entry Load | NIL |
| Exit Load | NIL |
HDFC Equity Opportunities Fund
A close-ended equity scheme that is set to raise your money meter by investing in equity instruments across different market capitalization. The fund aims to appreciate the growth of capital over a period of time.
Scheme Details
| Scheme Particulars | Scheme Information |
|---|---|
| Scheme Name | HDFC Equity Opportunities Fund |
| Scheme Type | Close-ended Equity Scheme |
| New Offer Period | Not specified yet |
| New Fund Offer Price | Not specified yet |
| Investment Objective | |
| Asset Allocation | Rs.10 per unit during NFO period |
| Benchmark | Capital appreciation over the long-term with investment in equity derivatives across different market capitalization |
| Sponsor | Equity- 80%-100%, Debt- 0%-20% |
| Minimum Investment Amount Required for Application | Nifty 500 |
| Minimum Amount Required for Additional Purchase | HDFC and Standard Life Investments Limited |
| Minimum Redemption Amount | Rs 5,000 and multiples of Re 10 afterward during the NFO period |
| Minimum Amount Required for SIP | Not specified yet |
| Plans Available | Regular, Direct |
| Scheme Options | Growth, Dividend Payout |
| Entry Load | NIL |
| Exit Load | NIL |
HDFC Fixed Maturity Plans – Series 37
As a close-ended income scheme, the fund taps into the investor psyche of regular income by investing in debt, money market and government securities.
Scheme Details
| Scheme Particulars | Scheme Information |
|---|---|
| Scheme Name | HDFC Equity Opportunities Fund |
| Scheme Type | Close-ended Income Scheme |
| New Offer Period | Not specified yet. |
| New Fund Offer Price | Rs 10 per unit during NFO period |
| Investment Objective | To churn out income regularly through investment in debt, money market and government securities |
| For plans with tenure of 15 to 400 days- 100% in debt instruments | |
| Asset Allocation | For plans with tenure of 401 days to 36 months- 70%-100% in debt and government securities, 0%-30% in money market instruments |
| For plans with tenure of over 36 months to 66 months- 80%-100% in debt and government securities, 0%-20% in money market instruments | |
| Benchmark | Crisil Fund Index, Crisil Short Term Bond Fund Index, Crisil Composite Bond Fund Index |
| Sponsor | HDFC and Standard Life Investments Limited |
| Minimum Investment Amount Required for Application | Rs 5,000 and multiples of Re 10 afterward during the NFO period |
| Minimum Amount Required for Additional Purchase | Not specified yet |
| Minimum Redemption Amount | Not specified yet |
| Minimum Amount Required for SIP | Not specified yet |
| Plans Available | Regular, Direct |
| Scheme Options | Growth, Dividend Payout |
| Entry Load | NIL |
| Exit Load | NIL |
Principal Small Cap Fund
This is an open-ended equity scheme set to give your invested capital a mean to grow substantially over the long-term. The scheme aims to invest primarily in equity and equity securities of small cap companies.
Scheme Details
| Scheme Particulars | Scheme Information |
|---|---|
| Scheme Name | Principal Small Cap Fund |
| Scheme Type | Open-ended Equity Scheme |
| New Offer Period | Not specified yet. Scheme will re-open for continuous sale and repurchase within five days from the allotment of fund units. |
| New Fund Offer Price | Rs 10 per unit during NFO period |
| Investment Objective | Capital appreciation over the long-term through investment in equity & equity derivatives |
| Equity & equity instruments of small cap companies- 65%-100% | |
| Asset Allocation | Equity & equity instruments of other than small cap companies-0%-35% |
| Debt and money market instruments- 0%-35% | |
| Benchmark | Nifty Free Float Smallcap 100 Index |
| Sponsor | Principal Financial Services, Inc. |
| Minimum Investment Amount Required for Application | Rs 5,000 and any amount afterward |
| Minimum Amount Required for Additional Purchase | Rs 1,000 and any amount afterward |
| Minimum Redemption Amount | Rs 500 or 50 units |
| Minimum Amount Required for SIP | A minimum of Rs 2,000 and 6 installments under each of the scheme options |
| Plans Available | Regular, Direct |
| Scheme Options | Growth, Dividend Payout |
| Entry Load | NIL |
| Exit Load | NIL |
