Mutual fund houses have launched several new schemes that are currently open for subscription. Investors can choose from debt, equity, and sector-based schemes based on their investment preferences and risk
appetite.
Take a look at three new fund offers (NFOs) that investors can currently subscribe to.
Zerodha Nifty Short Duration G-Sec Index Fund
Launched on December 26, the Zerodha Nifty Short Duration G-Sec Index Fund falls under the debt index fund category and focuses on government securities with maturities ranging from one to three years. It will remain open until January 9.
Since the fund invests mainly in G-Secs, the credit risk remains very low because the issuer is the Government of India. But the scheme does carry moderate interest rate risk, which means that the value of the fund may fluctuate “due to fluctuations in the underlying market prices of the bonds.”
“This fund might be a good choice for someone who wants to park money for the short term (between 1 to 3 years), and is looking to generate income. It may also serve as a debt component for reducing overall portfolio risk,” reads the description on Zerodha Fund House.
Investors can begin investing with a minimum amount of Rs 100. There is no lock-in or exit load period.
Motilal Oswal Diversified Equity Flexicap Passive FOF
The Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds opened for subscription on January 2 and will close on January 15. The scheme aims to generate long-term capital growth by investing in passive funds such as ETFs and index funds.
The fund offers diversified exposure across large-cap, mid-cap and small-cap stocks through its underlying passive investment instruments. Since the scheme follows a market-linked approach, returns will depend on overall market performance. As stated by Motilal Oswal Mutual Fund website, “there can be no assurance or guarantee that the investment objective of the scheme would be achieved.”
The minimum investment required for this scheme is Rs 500. Additional investments can be made in multiples of Rs 1.
The scheme has an exit load of 1 per cent if units are redeemed on or before 15 days from the date of allotment. No exit load will be applicable if the units are redeemed after 15 days from the date of allotment.
Groww Nifty Chemicals ETF
The Groww Nifty Chemicals ETF was launched on December 26 and will remain open for subscription until January 9. This exchange-traded fund aims to track the performance of the Nifty Chemicals Index.
The scheme invests in the constituent stocks of the index in the same proportion and weightage to deliver returns that closely match the index’s total return, subject to tracking errors and expenses.
Investors can start with a minimum investment of Rs 500, with additional investments allowed in multiples of Rs 1.
