If you’re searching for new investment opportunities in mutual funds, today marks the opening of three New Fund Offers (NFOs) from leading financial institutions. ICICI Prudential Mutual Fund has launched two new schemes, while Aditya Birla Sun Life Mutual Fund has introduced one NFO. Investors can participate in these schemes from September 30 to October 14, 2024. Here are the key highlights of each fund and what they offer.
1. ICICI Prudential Nifty200 Value 30 Index Fund
The ICICI Prudential Nifty200 Value 30 Index Fund is an open-ended equity scheme. This fund will track the Nifty200 Value 30 TRI, a benchmark index that comprises 30 companies selected based on their value score.
- Investment Type: Equity Value-Oriented
- Minimum Investment: ₹100
- Lock-In Period: None
- Exit Load: None
- Benchmark: Nifty200 Value 30 TRI
This scheme will allocate 95-100% of its assets to equity and equity-related securities, with a small portion (0-5%) allocated to money market instruments such as units of TREPS and debt schemes.
What makes it unique?
This fund focuses on companies with strong value characteristics. The selection is based on factors like Earnings to Price Ratio (E/P), Book Value to Price Ratio (B/P), Sales to Price Ratio (S/P), and Dividend Yield. The weightage of a stock is determined by its value score and free-float market capitalization.
- Open for Investment: From September 30, 2024
- Close Date: October 14, 2024
2. ICICI Prudential Nifty200 Value 30 ETF
The second NFO by ICICI Prudential is an Exchange-Traded Fund (ETF) that also tracks the Nifty200 Value 30 Index. The investment strategy here is similar to the first fund but in an ETF format. The aim is to provide returns close to the Nifty200 Value 30 TRI index before expenses, with some room for tracking errors.
- Investment Type: Equity Value-Oriented (ETF)
- Minimum Investment: ₹100
- Lock-In Period: None
- Exit Load: None
- Benchmark: Nifty200 Value 30 TRI
The scheme also invests 95-100% in equity and related securities and 0-5% in money market instruments like TREPS or debt schemes.
Why consider this ETF?
ETFs are known for their flexibility, offering liquidity and lower expense ratios compared to traditional mutual funds. For investors looking for exposure to value-driven stocks in the Nifty200 Value 30 Index, this ETF could be an efficient way to participate.
- Open for Investment: September 30, 2024
- Close Date: October 14, 2024
3. Aditya Birla Sun Life CRISIL IBX AAA NBFC HFC Index-Sep 2026 Fund
The Aditya Birla Sun Life CRISIL IBX AAA NBFC HFC Index-Sep 2026 Fund is a targeted maturity debt fund. This scheme follows the CRISIL IBX AAA NBFC HFC – Sep 2026 index, offering a safer investment opportunity focused on AAA-rated NBFCs (Non-Banking Financial Companies) and HFCs (Housing Finance Companies).
- Investment Type: Target Maturity Debt Fund
- Minimum Investment: ₹1,000
- Lock-In Period: None
- Exit Load: None
- Benchmark: CRISIL IBX AAA NBFC HFC – Sep 2026
This scheme is designed to mature by September 2026, making it ideal for investors seeking fixed-duration investments with high credit quality.
Why this scheme?
The focus on AAA-rated securities ensures a lower credit risk, making it suitable for risk-averse investors. The fixed maturity period offers clarity on the investment horizon, aligning with financial goals planned over the next two years.
- Open for Investment: September 30, 2024
- Close Date: October 7, 2024
Why Invest in NFOs?
New Fund Offers (NFOs) present investors with a unique opportunity to invest in mutual funds right from their launch. These funds often come with innovative strategies or specific goals, allowing investors to diversify their portfolios based on personal risk appetite and financial objectives.
Whether you are looking to invest in value-oriented equity schemes or prefer the safety of AAA-rated debt securities, the latest NFOs from ICICI Prudential and Aditya Birla Sun Life cater to a wide range of investment needs.
Explore these NFOs today to make the most of the available opportunities!
