Five equity funds opened for subscription on September 17.
The turnaround in markets is leading more AMCs to come up with new equity fund offers.
Four fund houses – ICICI Prudential, Reliance, Kotak and IDFC have collectively launched five equity funds on September 17. Currently, NFOs of seven equity funds are open for subscription.
Kotak Mutual Fund and IDFC Mutual Fund have launched their open ended equity scheme called Kotak Equity Savings Fund and IDFC Dynamic Equity Fund, respectively. Both the funds are unique in their own way.
Kotak Equity Savings Fund aims to generate income by predominantly investing in arbitrage opportunities in the cash and derivative segment of the equity market and enhance returns with a moderate exposure in equity and equity related instruments. Under normal circumstances, the scheme would invest at least 40% in arbitrage opportunities, up to 35% in debt and money market and up to 25% in unhedged equity.
IDFC Dynamic Equity Fund seeks to generate long term capital appreciation by investing in equity instruments of relatively lower volatility. To reduce downside risk, the scheme will invest in equity derivatives and debt & money market instruments.
Unlike some time back when there was a flurry of closed end funds, the industry is now seeing fund launches of all types – closed end, open end, passive funds and international funds.
Reliance Mutual Fund has launched an ETF called R* Shares Sensex ETF. As the name suggests the scheme aims to provide investment returns closely corresponding to the total returns of the securities as represented by the S&P BSE Sensex Index.
ICICI Prudential Mutual Fund and Reliance Mutual Fund have launched close ended equity funds. ICICI Prudential Mutual Fund has launched third series of its 42 months close end equity fund called ICICI Prudential Growth Fund - Series 3. The scheme aims to provide capital appreciation by investing in a diversified portfolio of equity and equity related securities. The fund manager will pick up stocks based on metrics like discounted cash flow, cash flow return on investment, earning yields etc.
Likewise, Reliance Mutual Fund has launched third series of its three year closed end fund called Reliance Capital Builder Fund – Series C. 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.
The trend of close end funds started last year with IDFC’s Equity Opportunities Fund. Most of the close end funds launched recently by fund houses have a bias towards mid and small cap sectors. Recently, UTI Focused Equity Fund has collected Rs. 770 crore during its NFO becoming highest grosser in the closed end equity fund category.
