Want to Invest in NFOs? Bet on these Upcoming MF Offers

Mutual Fund NAV Online 200 views

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 ParticularsScheme 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 AllocationEquity & Equity Derivatives- 95%-100%, Debt Instruments- 0%-5%
Benchmark CNX 100 Equal Weighted Index
SponsorSundaram Finance Limited
Minimum Investment Amount Required for ApplicationRs 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
Must Read  ULIP or Mutual Fund-choose the right tool to build strong investment portfolio

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 ParticularsScheme Information
Scheme NameReliance Dual Advantage Fixed Tenure Fund X (Plan A-Plan F)
Scheme Type Close-ended Hybrid Scheme
New Offer Period12 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 AllocationFor 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
BenchmarkCRISIL MIP Blended INDEX
SponsorReliance Capital Limited
Minimum Investment Amount Required for ApplicationRs 5,000 and multiples of Re 1 afterward
Minimum Amount Required for Additional PurchaseRs 500 and multiples of Re 1 afterward
Minimum Redemption Amount50 units or Rs 500, whichever is lower
Minimum Amount Required for SIPNot specified yet
Scheme OptionsGrowth, Dividend Payout
Entry LoadNIL
Exit LoadNIL

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.

Must Read  Mutual fund great investment option, but fraught with risks

Scheme Details

Scheme ParticularsScheme Information
Scheme NameHDFC Equity Opportunities Fund
Scheme TypeClose-ended Equity Scheme
New Offer PeriodNot specified yet
New Fund Offer PriceNot specified yet
Investment Objective
Asset AllocationRs.10 per unit during NFO period
BenchmarkCapital appreciation over the long-term with investment in equity derivatives across different market capitalization
SponsorEquity- 80%-100%, Debt- 0%-20%
Minimum Investment Amount Required for ApplicationNifty 500
Minimum Amount Required for Additional PurchaseHDFC and Standard Life Investments Limited
Minimum Redemption AmountRs 5,000 and multiples of Re 10 afterward during the NFO period
Minimum Amount Required for SIPNot specified yet
Plans AvailableRegular, Direct
Scheme OptionsGrowth, Dividend Payout
Entry LoadNIL
Exit LoadNIL

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 ParticularsScheme Information
Scheme NameHDFC Equity Opportunities Fund
Scheme TypeClose-ended Income Scheme
New Offer PeriodNot specified yet.
New Fund Offer PriceRs 10 per unit during NFO period
Investment ObjectiveTo 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 AllocationFor 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
BenchmarkCrisil Fund Index, Crisil Short Term Bond Fund Index, Crisil Composite Bond Fund Index
SponsorHDFC and Standard Life Investments Limited
Minimum Investment Amount Required for ApplicationRs 5,000 and multiples of Re 10 afterward during the NFO period
Minimum Amount Required for Additional PurchaseNot specified yet
Minimum Redemption AmountNot specified yet
Minimum Amount Required for SIPNot specified yet
Plans AvailableRegular, Direct
Scheme OptionsGrowth, Dividend Payout
Entry LoadNIL
Exit LoadNIL
Must Read  Tips for investors looking for joyful ride with mutual fund investment

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 ParticularsScheme Information
Scheme NamePrincipal Small Cap Fund
Scheme TypeOpen-ended Equity Scheme
New Offer PeriodNot specified yet. Scheme will re-open for continuous sale and repurchase within five days from the allotment of fund units.
New Fund Offer PriceRs 10 per unit during NFO period
Investment ObjectiveCapital appreciation over the long-term through investment in equity & equity derivatives
Equity & equity instruments of small cap companies- 65%-100%
Asset AllocationEquity & equity instruments of other than small cap companies-0%-35%
Debt and money market instruments- 0%-35%
BenchmarkNifty Free Float Smallcap 100 Index
SponsorPrincipal Financial Services, Inc.
Minimum Investment Amount Required for ApplicationRs 5,000 and any amount afterward
Minimum Amount Required for Additional PurchaseRs 1,000 and any amount afterward
Minimum Redemption AmountRs 500 or 50 units
Minimum Amount Required for SIPA minimum of Rs 2,000 and 6 installments under each of the scheme options
Plans AvailableRegular, Direct
Scheme OptionsGrowth, Dividend Payout
Entry LoadNIL
Exit LoadNIL