New Fund Offer to Open: After the good response to the New Fund Offer (NFO) last year i.e. in 2024, in the year 2025 too, fund houses are continuously launching new schemes of mutual funds based on innovative subjects or strong themes. In this sequence, two new fund offers are being launched on the last day of this week, 24th January. In this, one is on multi asset allocation theme and the other is based on Nifty 500 Momentum 50 index theme. If you are also looking for a new scheme of mutual fund, then 24th January will be a better opportunity. Know the details of both the funds.
You can buy units at subscription price
Through NFO, investors can buy mutual fund units at the subscription price, which is usually Rs 10 per unit. Both open-ended and closed-ended funds are launched through NFO for a limited period, after which such mutual funds are traded in the market based on their respective Net Asset Value (NAV). New fund offers are usually cheaper because they are new in the market. While launching NFO, mutual fund companies give complete information about it, like what is its category, what is the benchmark index, what type of stocks will be in the portfolio.
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Axis Nifty500 Momentum 50 Index
Axis Mutual Fund is launching Nifty 500 Momentum 50 Index Fund on January 24. This is an open ended equity scheme, which can be subscribed till 7th February.
Fund House: Axis Mutual Fund
Issue Open Date: January 24, 2025
Issue closing date: February 7, 2025
Category : Flexi Cap
Minimum investment: Rs 100
Lock in period: none
Exit load: 0.25% on redemption within 15 days
Benchmark: Nifty 500 Momentum 50 TRI
Fund Manager: Karthik Kumar, Sachin Relekar
Features of NFO
Nifty 500 Momentum 50 Fund is a passively managed index fund that invests in top 50 stocks selected based on their 6 month and 12 month performance. The stocks are selected from the scope of Nifty 500 index. This fund aims to generate returns by investing in stocks that have shown strong performance trends over time.
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Who should invest?
This mutual fund scheme is a better option for investors looking for a diversified equity portfolio with a focus on momentum-driven stocks. This can be an ideal option for investors with moderate to high risk appetite and planning long term investments.
What are the risks in this?
Like any equity investment, this fund carries market risk just like the risk of loss. Momentum investing can also increase portfolio turnover, which can increase transaction costs and impact returns. Historically, it has been observed that momentum strategies may perform well in market bullish and recovery phases and underperform in bearish phases.
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LIC MF Multi Asset Allocation
LIC Mutual Fund is launching LIC Multi Asset Allocation Fund on 24th January, which can be subscribed till 7th February.
Fund House: LIC Mutual Fund
Issue Open Date: January 24, 2025
Issue closing date: February 7, 2025
Category : Hybrid Multi Asset Allocation
Minimum investment: Rs 5000
Lock in period: none
Exit load: 1% if redeemed within 3 months
Benchmark: NIFTY 500 TRI (65), NIFTY Composite Debt Index (25), Domestic Price of Gold (10)
Fund Manager: Nikhil Rungta, Prateek Harish Shroff
What is the specialty of the fund?
Multi Asset Allocation Fund (MAAF) is a hybrid mutual fund. In this, investments are made in many asset classes like equity, debt, gold, real estate. By investing in these funds, investors get a diversified portfolio and the possibility of getting risk-adjusted returns.
By investing in these, the balance between risk and return is better. Their attractiveness increases during market fluctuations. Their performance has been good in the last few years.
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Who should invest?
Investors who are looking for an investment option that provides stable returns during market volatility can consider investing in multi asset allocation funds. However, despite the ability to deliver stable returns, the risk level of most multi-asset funds is ‘high’ or ‘very high’. This means that there is risk associated with investing in them. Therefore, take any decision keeping in mind your risk taking ability.
(Disclaimer: The purpose of this article is only to provide information about the scheme and not to recommend investment. The past returns of the index or any mutual fund scheme cannot be considered as a guarantee of future performance. Any investment decision is taken based on SEBI approved Do this only after taking advice from an investment advisor.)