ICICI Prudential, Reliance and Sundaram have come out with their closed end funds.
The
euphoria surrounding close end funds does not seem to be subsiding anytime soon.
Three fund houses – ICICI Prudential, Reliance and Sundaram have come out with
their NFOs of close-end equity funds.
ICICI Prudential Mutual Fund has launched a second series of its 1286 days close ended equity fund called ICICI Prudential Growth Fund – Series 2. The NFO of the fund is currently open for subscription and will close on July 28. The scheme aims to provide capital appreciation by investing in a well-diversified portfolio of equity and equity related securities. The fund would adopt a combination of top down and bottom up approach for stock selection. It will be benchmarked against CNX Nifty Index. Yogesh Bhatt, Vinay Sharma and Ashwin Jain are the fund managers of the scheme.
Similarly, Reliance Mutual Fund has launched its three year close ended fund called Reliance Capital Builder Fund – Series A. The NFO opens for subscription from today and close on July 31. 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. Benchmarked against S&P BSE 200 Index, the minimum application amount is Rs. 5000. Sailesh Raj Bhan and Jahnvee Shah are the fund managers for the scheme.
Meanwhile, Sundaram Mutual Fund has also launched a three year close end RGESS fund called Sundaram Top 100 Series III. The NFO of the fund is currently open for subscription and will close on July 24. The scheme aims to appreciate capital by investing in a portfolio of equity securities specified as eligible securities for RGESS. The scheme will be benchmarked against CNX 100. J Venkatesan will manage the fund.
Last month, three close ended funds - Birla Sun Life Emerging Leader Series 2, ICICI Prudential Growth Fund Series 1 and Sundaram Top 100 Series I and II had collectively mopped up Rs. 764 crore in their NFOs. In fact, AMFI data shows that such funds had collected close to Rs. 1500 crore in just two months – May and June.
Most of the close end funds launched recently by fund houses have a bias towards mid and small cap sectors. Mid & small cap funds have outperformed their large and multi cap peers over the one and three year period. Value Research data shows that mid & small cap category has delivered an absolute return of 64% over a one year period and CAGR of 18% return over a three year period, beating large cap and multi cap funds.
The trend of close end funds started last year with IDFC’s Equity Opportunities Fund. ICICI Prudential’s Value Fund Series 1 was the highest grosser in the close ended equity fund category which collected Rs. 643 crore.
