3 Passive Mutual Fund NFOs to Stay Open for Subscription this Week
A brand new set of investment opportunities will be available this week with three passive mutual funds – Groww Nifty 1D Rate Liquid ETF, Motilal Oswal Nifty 500 Momentum 50 ETF, and HDFC Nifty LargeMidcap 250 Index Fund, is opened for subscription and is expected to attract a wide range of investors who are currently on the lookout for low-cost exposure to each and every segment of the market.
1. Groww Nifty 1D Rate Liquid ETF
This is an open-ended Exchange Traded Fund (ETF) tracking the Nifty 1D Rate Index. Its interest rate risk and credit risk would be relatively lower, hence it would attract more conservative investors. The fund is open for subscription until 20th September 2024. Therefore, investors can get into this ETF at a minimum investment of Rs.500. This fund primarily allocates 95-100% of its assets in tri-party repos, government security repos, and reverse repos. Thereby providing liquidity and safety. Kaustubh Sule manages the fund, which mimics the Nifty 1D Rate Index to keep the investment in sync with short-term interest rate cycles. It is a low-cost option designed to fund instruments that mature in under 30 days.
2. Motilal Oswal Nifty 500 Momentum 50 ETF
It aims to garner returns that replicate the companies in the Nifty 500 with the highest momentum. The new ETF, Nifty 500 Momentum 50 Total Return Index Fund, is available for subscription till September 18, 2024. This fund offers an entry at Rs.500 minimum investment and opens the door to momentum-driven strategies at a lower cost. The corpus in the fund shall further be fully invested in the constituent companies of the Nifty 500 Momentum 50 Index amounting to 95-100% of the portfolio constituted, and the balance between 0-5% of the portfolio so constituted can be invested in liquid schemes and money market instruments. Managed by Swapnil Mayekar and Rakesh Shetty, the underlying index ETF is geared toward investors looking for a ride on companies with positive price momentum, but they need to be prepared for volatility.
3. HDFC Nifty LargeMidcap 250 Index Fund
This gives the opportunity to gain exposure to large-cap as well as mid-cap stocks. The Open-Ended Scheme shall replicate the Nifty LargeMidcap 250 Index (TRI) and will open for subscription from September 20, 2024, to October 4, 2024. Investors can begin investing here with a minimum investment amount of Rs.100 and hence is accessible to a wide range of participants. The fund will invest 95-100% of its assets in the firms included in the Nifty LargeMidcap 250 Index, thereby allowing a diversified portfolio of top-performing large and mid-cap firms. It can also invest up to 0-5% in debt securities, money market instruments or units of debt schemes. This scheme will be handled by Nirman Morakhia and Arun Agarwal, and it can be said to be best suited for those investors who want to take a balance between large-cap stability and growth potential through mid-caps.
Conclusion
These three NFOs give an investor the rarest opportunity to enter the market through passive investment strategies. Though stability and momentum are different portfolios, many investors seem to want a balanced mix of both.
