UTI, Reliance and Sundaram have come out with their closed end equity funds.
Closed ended equity funds seem to be the most preferred way for fund houses to attract investors. In the past three months, 10 close ended equity funds have mopped up close to Rs. 1,700 crore from investors.
Three fund houses – UTI, Reliance and Sundaram have come out with their NFOs of close-end equity funds.
In its first close ended equity fund of this season, UTI Mutual Fund has launched UTI Focused Equity Fund-Series I (1100 days). The NFO of the scheme is open for subscription from August 13 and closes on August 27. This scheme aims to generate long term capital appreciation by investing predominantly in equity and equity related securities of listed companies. The scheme will normally hold up to 30 stocks in the portfolio.
Through a press release, the fund manager of the scheme, Anoop Bhaskar, said, “The improvement in domestic macro-economic indicators coupled with political stability and administrative astuteness should be the foundation stone for positive equity returns in the coming years. Our focus on quality should help us capitalize on this growth opportunity and benefit our investors.”
Reliance Mutual Fund has launched its three year close ended fund called Reliance Capital Builder Fund – Series B. Last month, the fund house had launched series A of the same fund. The NFO opens for subscription from August 12 and closes on August 26. The fund aims to provide capital appreciation by investing in equity and equity related instruments with a small exposure to fixed income securities. The fund would identify companies on basis of sound management, good track record, potential for future growth, industry economic scenario and strong cash flows.
Similarly, Sundaram Mutual Fund has launched fifth series of its Sundaram Select Micro Cap Series V (42 Months). The scheme aims to seek capital appreciation by investing predominantly in equity/equity-related instruments of companies that can be termed as micro-caps. A company whose market capitalisation is equal to or lower than that of the 301st stock by market cap on the NSE at the time of investment will be considered to be in micro-cap category.
It remains to be seen if closed end funds live up to their expectations.
