Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities, which helps reduce the overall risk of the investment and protect the investor’s portfolio from the volatility of individual securities.
Mutual funds offer a convenient, diversified, and professionally managed way to invest in various asset classes, making them suitable for investors of all experience levels, providing easy access to a broad range of investments, liquidity, and potential for steady growth with relatively low risk, making them an attractive option for long-term wealth creation.
Listed below are some of the well-known mutual funds being launched this week that you can add to your watchlist with plans of diversifying your investors.
SBI Nifty India Consumption Index Fund
SBI Nifty India Consumption Index Fund is an open-ended scheme replicating/ tracking the Nifty India Consumption Index. The new fund offer or NFO will open for subscription on October 16 and will close on October 25, with the allotment date set at October 30, 2024. It will be reopened for continuous sale and repurchase within five business days from the date of allotment.
The investment objective of the scheme is to provide returns that correspond to the total returns of the securities as represented by the underlying index, subject to tracking error
The scheme would primarily invest a minimum of 95 percent and a maximum of 100 percent of its assets in stocks comprising the Nifty India Consumption Index and up to 5 percent in Government securities
The minimum application amount required is Rs 5,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual, and annual SIP.
There is an Exit load of 0.25 percent if redeemed on or before 15 days from the date of allotment. For exit after 15 days from the date of allotment, the exit load will be nil.
Baroda BNP Paribas Nifty Midcap 150 Index Fund
Baroda BNP Paribas Nifty Midcap 150 Index Fund is an open-ended index fund that aims to provide returns that closely mirror the performance of the Nifty Midcap 150 Total Returns Index, it seeks to deliver returns similar to the overall market performance of mid-cap companies.
The New Fund Offer (NFO) begins from October 14, 2024, and will remain open for subscriptions until October 28, 2024. The new fund requires a minimum subscription amount of Rs. 1,000, and investors can add to their holdings in multiples of Rs. 1 thereafter.
The exit load for the Baroda BNP Paribas Nifty Midcap 150 Index Fund is set at 0.2 percent if the units are redeemed within 7 days from the allotment date but will not apply to redemptions following 7 days.
Bandhan Nifty 500 Value 50 Index Fund
The Bandhan Nifty 500 Value 50 Index Fund Mirrors the Nifty 500 Value 50 index consisting of 50 companies from its parent Nifty 500 index, selected based on their ‘value’ scores. The fund Targets undervalued firms, aiming for better risk-adjusted returns over time.
The fund is an open-ended scheme with investments open from October 14-24 2024, with a minimum investment of Rs. 1,000 and then with multiples of Rs. 1. It has an exit load of 0.25 percent if redeemed on or before 15 days from the allotment date and Nil if redeemed after the said period.
The investment objective of the Scheme is to replicate the Nifty 500 Momentum 50 Index by investing in securities of the Nifty 500 Momentum 50 Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of Nifty 500 Momentum 50 Index, subject to tracking errors.
Bandhan Nifty 500 Momentum 50 Index Fund
Bandhan Nifty 500 Momentum 50 Index Fund Replicating the Nifty 500 Momentum 50 Index tracking the performance of 50 stocks which are selected based on normalized momentum score from the Nifty 500 index. It Seeks to capture market trends, potentially offering higher returns compared to broader indices.
The new fund is an open-ended scheme with investments open from October 14-24 2024, with a minimum investment of Rs. 1,000 and then with multiples of Rs. 1. It has an exit load of 0.25 percent if redeemed on or before 15 days from the allotment date and Nil if redeemed after the said period.
The investment objective of the Scheme is to replicate the Nifty 500 Momentum 50 Index by investing in securities of the Nifty 500 Momentum 50 Index in the same proportion/weightage with an aim to provide returns before expenses that track the total return of the Nifty 500 Momentum 50 Index, subject to tracking errors.
Written by: Bharath K.S
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