Mutual Funds Houses filed Draft Document with SEBI to Launch Four New Funds
Recently, three mutual fund houses submitted draft documents to SEBI, proposing the launching of four new funds. Out of them, three are passive funds, and the remaining one is a target maturity fund. All these proposals are going to cater to diverse investors and enhance the choices available in the mutual fund market.
Angel One Mutual Fund: Nifty Total Market Index Fund
The Angel One Mutual Fund has offered an open-ended scheme called the Nifty Total Market Index Fund, recently approved to start its operations. This scheme will attempt to replicate or track the Nifty Total Market Index, offering returns that closely correlate with the index’s total returns before expenses, adjusted for tracking errors.
It intends to invest 95-100% of its corpus in equities and equity-related instruments within the Nifty Total Market Index, including derivatives. The balance of 0-5% will be invested in cash, money market instruments, government securities, and liquid schemes.
There shall be no minimum lump sum requirement set to invest in the fund, and subsequent investments shall have multiples of Rs.1 only. For SIP, an account minimum of Rs.1,000 per month in no event less than 12 months should be maintained. The scheme will be managed by Mehul Dama and will be benchmarked against the Nifty Total Market TRI.
Groww Nifty India Railways PSU Index Fund
Groww Mutual Fund has filed documents for the Nifty India Railways PSU Index Fund, an open-ended scheme that is meant to track the Nifty India Railways PSU Index. The scheme aims to offer long-term capital growth by investing in the securities of this index in the same proportion and weightage, subject to tracking errors.
The portfolio of the fund will comprise 95-100% equity and equity-related instruments of companies within the Nifty India Railways PSU Index. The remaining 0-5% will be allocated to debt and money market instruments or units of debt schemes. The minimum lump sum investment is Rs.500, while SIPs can start from as low as Rs.100.
Groww Nifty India Railways PSU ETF
The other scheme planned is the Nifty India Railways PSU ETF, another index-tracking scheme by this AMC, with similar objectives and asset allocation. This fund of the Groww Mutual Fund is benchmarked against the Nifty India Railways PSU Index—TRI.
Tata Mutual Fund: Crisil IBX AAA NBFC June 2027 Index Fund
Tata Mutual Fund has filed an application for an open-ended Target Maturity Index Fund called Crisil IBX AAA NBFC June 2027 Index Fund. This scheme would provide returns that closely replicate the performance of the Crisil IBX AAA NBFC June 2027 Index, subject to tracking errors.
It will invest 95-100% of its assets in securities in the Crisil IBX AAA NBFC June 2027 Index and invest 0-5% of its assets in debt and money market instruments. The fund will have a minimum lump sum investment requirement of Rs.5,000. This would cater to investors who have moderate interest rate risk and low credit risk.
Conclusion
These new filings mark the continued efforts of the mutual fund industry to diversify and meet the changing preferences of retail and institutional investors. By introducing passive funds and the target maturity scheme, fund houses hope to address investors’ needs for simplified, goal-orientated investment solutions.
The proposals are currently under SEBI review and are likely to further enhance the choices at the disposal of mutual fund investors in India.
