Baroda BNP Paribas Gold ETF
Baroda BNP Paribas Gold ETF is an open-ended scheme replicating/tracking domestic price of Gold. The new fund offer or NFO of the scheme is open for subscription and it will close on November 30.
The investment objective of the scheme is to provide investment returns closely corresponding to the domestic price of gold before expenses, subject to tracking errors, fees and expenses by investing in physical gold.
The performance of the scheme is benchmarked against the Domestic Price of Gold. The scheme will be managed by Vishnu Soni.
The minimum application amount is Rs 5,000 and in multiples of Re 1 thereafter. The scheme will invest 95-100% in physical gold and gold related instruments, 0-5% in debt instruments, units of debt mutual fund schemes, money market instruments, cash and cash equivalents etc.
The proposed creation unit size for the scheme is 1,00,000 units so that 1 unit of an ETF is equal to 1/100th gram of gold. The fund may from time to time change the size of the creation unit in order to equate it with marketable lots of the underlying instruments.The scheme is suitable for investors who are seeking long-term capital appreciation, and want investment in physical gold and returns that track domestic price of gold subject to tracking error. The principal invested in this scheme is at high risk according to the riskometer of the scheme.
Union Children’s Fund
Union Children’s Fund is an open- ended fund for children with a lock-in for at least five years or till the child attains age of majority (whichever is earlier). The new fund offer or the NFO of the scheme is open for subscription and it will close on December 12. The scheme will re-open for continuous sale and repurchase within five business days of allotment.
The lock-in period in the scheme is at least five years. The units purchased cannot be assigned/ transferred/ pledged/ redeemed/ switched‐out until completion of five years from the date of allotment under the scheme or until the unitholder (being the beneficiary child) attains the age of majority (i.e. completion of 18 years), whichever is earlier.
The investment objective of the scheme is to generate long-term capital appreciation by investing in a mix of securities comprising of equity, equity related securities and debt instruments as per the asset allocation pattern of the scheme with a view to provide investment solution to investors.
The scheme is benchmarked against S&P BSE 500 Index (TRI). The scheme will be managed by Hardick Bora, Sanjay Bembalkar (equity investments), Parijat Agrawal (debt investments).
The scheme will allocate 65-100% in equity and equity related instruments, 0-35% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.
The scheme will follow an active investment strategy and will invest minimum 65% of its net assets in equity and equity related securities, which in the opinion of the fund manager offers superior risk reward payoff. The scheme will offer direct and regular plans with growth and IDCW options.
The minimum application amount is Rs 1,000 and in multiples of Re 1 thereafter. The minimum application amount for weekly SIP is Rs 500 and in multiples of Re 1 thereafter for 12 weeks. The minimum application amount for monthly SIP is Rs 1,000 and in multiples of Re 1 thereafter for six months. The minimum application amount for quarterly SIP is Rs 5,000 and in multiples of Re 1 thereafter for two quarters.
Axis India Manufacturing Fund
Axis India Manufacturing Fund is an open-ended equity scheme representing the India manufacturing theme. The new fund offer or NFO of the scheme will open for subscription on December 1 and it will close on December 15.
The investment objective of the scheme is to provide long term capital appreciation by investing in equity and equity related securities of companies engaged in manufacturing themes. The minimum application amount will be Rs 500 and in multiples of Re 1 thereafter. The scheme will be benchmarked against NIFTY India Manufacturing TRI. The scheme will be managed by Shreyash Devalkar, Nitin Arora.
The scheme will allocate 80-100% in equity and equity related instruments selected based on the manufacturing theme, 0-20% in other equity and equity related instruments, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs & InVITs.
The scheme aims to invest in listed companies that manufacture goods and that have/will have manufacturing facilities. The scheme also aims to invest in such companies that are likely to benefit from government incentives and the entire manufacturing opportunity available in India. The universe of the scheme may also contain companies listed in India and having manufacturing facilities outside India.
White Oak Capital Large & Mid Cap Fund
WOC Large & Mid Cap Fund is an open-ended equity scheme investing in both large cap and mid cap stocks. The new fund offer or NFO of the scheme will open for subscription on December 1 and it will close on December 15.
The objective of the scheme is to generate long-term capital appreciation by investing in and managing a diversified portfolio of equity and equity related instruments of large and mid cap companies. The scheme will be benchmarked against S&P BSE 250 Large MidCap TRI. The scheme will be managed by Ramesh Mantri, Trupti Agrawal, Piyush Baranwal, and Shariq Merchant.
The minimum application amount will be Rs 500 and in multiples of Re 1 thereafter. The minimum application amount for weekly, fortnightly and monthly SIP will be Rs 100 (plus in multiple of Re 1) with minimum six instalments. The minimum application amount for quarterly SIP will be Rs 500 (plus in multiple of Re 1) with minimum four instalments.
The scheme will allocate 70-100% in equity and equity related instruments of large and mid cap companies, 0-30% in equity and equity related instruments other than large and mid cap companies, 0-30% in debt securities and money market instruments, and 0-10% in units issued by REITs and InvITs. The scheme will follow an approach of bottom-up stock selection that is well applicable across sectors and market capitalisations. The scheme will mainly focus on maintaining a reasonably diversified portfolio at all times, However the exposure to market capitalizations will be decided based on our internal assessment and research on an ongoing basis.
Should you invest?
Should you invest in these NFOs? We typically ask investors to avoid investing in NFOs unless they offer something unique. The uniqueness could be that the scheme is offering an investment option that is not available in the market or offering something extra to an existing option. Otherwise, we believe investors are better off with an existing scheme with a long performance record. This is because you have some historical data to base your investment decision. You don’t have any data when it comes to new offerings.
There are around 13 Gold ETFs in the market. Around 10 schemes have a performance record of over 10 years. LIC MF Gold ETF gave the highest return of around 7.41%. Invesco India Gold ETF offered 7.20%. SBI Gold ETF gave 7.13%. Kotak Gold ETF and HDFC Gold ETF gave 7.11%. Nippon India ETF Gold BeES and UTI Gold ETF gave 7.09%. ICICI Prudential Gold ETF offered around 7.01%. Two schemes offered around 6%.
Mirae Asset Gold ETF and DSP Gold ETF are relatively new schemes. These schemes were launched in February and April respectively. Edelweiss Gold ETF has recently completed its NFO period.
There are around 11 schemes in the children’s fund category. Around 10 schemes have a performance record of over five years. Tata Young Citizen Fund, the topper in the category, offered 15.83% in a five year horizon. HDFC Children’s Gift Fund gave 15.33%. UTI CCF- Investment Plan gave 13.92%. ICICI Pru Child Care Fund-Gift Plan and LIC MF Children’s Gift Fund offered 12.49% and 11.89% respectively. Axis Children’s Gift Fund-Compulsory Lock in and SBI Magnum Children’s Benefit Fund-Savings Plan offered 11.09% and 10.21% respectively. UTI CCF – Savings Plan offered 8.63%.
There are two schemes based on manufacturing theme. ICICI Prudential Manufacturing Fund has completed five years in the market. The scheme gave 19.33% in five years. Quant Manufacturing Fund is a new entrant in the category. The scheme was launched in August. We do not recommend thematic/sectoral schemes to individual investors with moderate corpus. These schemes can be used by experienced investors with large corpus to diversity. However, an existing scheme with a proven track record would be a better bet.
There are 26 schemes in the large & mid cap category. Around 21 schemes have a performance record of over five years. Quant Large & Mid Cap Fund and HDFC Large and Mid Cap Fund gave around 19% in a five year horizon. Around four schemes gave 18%. Three schemes gave 17%. Around four schemes have offered 16%. Six schemes in the category gave 15% and two schemes offered 13%. If you have the necessary risk appetite and long investment horizon, you can consider investing in large & mid cap schemes.
