2 Mutual Fund NFOs Open for Subscription this Week
Feb 29, 2024
Kotak Long Duration Fund
Kotak Mutual Fund launches – Kotak Long Duration Fund
It is an open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 Years. A relatively high interest rate risk and relatively low credit risk.
Accordingly, investment objective of the Scheme is to generate income / capital appreciation through investments in debt and money market instruments. There is no assurance that the investment objective of the Scheme will be achieved.
Under normal circumstances, Kotak Long Duration Fund will hold an allocation of 0% to 100% in Debt & Money market instruments.
[Read: Exploring Alternatives to Bank FDs: A Deep Dive into Debt Funds]
As per the Scheme Information Document, Kotak Long Duration Fund will invest in Debt & Money Market Instruments such that the Macaulay duration of the portfolio is greater than 7 years. The duration would be managed dynamically using debt & money market instruments. Volatility will be high given the long duration of the product.
The Scheme shall follow active investment strategy. The portfolio is constructed taking into account ratings from different rating agencies, rating migration, credit premium over the price of a sovereign security, general economic conditions and such other criteria.
Kotak Long Duration Fund’s performance will be benchmarked against NIFTY Long Duration Debt Index-A-III
The scheme will be managed by Mr Abhishek Bisen and Ms Palha Khanna
The NFO opens for subscription on February 28, 2024 and closes on March 06, 2024. The schemes will reopen for continuous sale and repurchase on March 13, 2024.
The minimum subscription amount is Rs 100/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).
ICICI Prudential Nifty LargeMidcap 250 Index Fund
ICICI Mutual Fund launches – ICICI Pru Nifty LargeMidcap 250 Index Fund
it is an open-ended Index scheme replicating Nifty LargeMidcap 250 Index.
Accordingly, investment objective of the Scheme is to invest in companies whose securities are included in Nifty LargeMidcap 250 Index in the same weightage that they represent in the Nifty LargeMidcap 250 Index in order to achieve the returns of the above index, subject to tracking errors. However, there is no assurance or guarantee that the investment objective of the scheme shall be achieved.
Under normal circumstances, ICICI Pru Nifty LargeMidcap 250 Index Fund will hold an allocation of 35% to 80% in Equity & Equity Related Instruments, 10% to 55% in Debt and Money Market Securities (including TREPS (Tri-Party Repo) and Reverse Repo in Government Securities), 10% to 30% in Units of Gold/Silver ETFs & other Gold and Silver related instruments (including Exchange Traded Commodity Derivatives (ETCDs) as permitted by SEBI from time to time and 0% to 10% in Units issued by REITs & InvITs.
[Read: 3 Best Large & Mid Cap Funds for 2024]
As per the Scheme Information Document, ICICI Pru Nifty LargeMidcap 250 Index Fund will be invested in stocks constituting the respective benchmark of the Scheme i.e. Nifty LargeMidcap 250 Index and a very small portion (0- 5% of the Net Assets) of the scheme may be kept liquid to meet the liquidity and expense requirements.
The performance of the Scheme may not commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index.
ICICI Pru Nifty LargeMidcap 250 Index Fund’s performance will be benchmarked against 45% NIFTY 500 TRI + 40% CRISIL Composite Bond Index + 10% Domestic Price of Physical Gold + 5% Domestic Price of Silver (First Tier Benchmark)
The scheme will be managed by Mr Nishit Patel, Ms Priya Sridhar and Mr Kewal Shah.
The NFO opens for subscription on February 22, 2024 and closes on March 07, 2024. The schemes will reopen for continuous sale and repurchase within 5 business days from the date of allotment.
The minimum subscription amount is Rs 1,000/- and in multiples of Re.1/- thereof.
The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).