Axis US Treasury Dynamic Bond ETF FoF
Axis US Treasury Dynamic Bond ETF FoF is an open-ended fund of fund investing in ETFs wherein the underlying investments comprise of US treasury securities across duration. The new fund offer or NFO of the scheme will open for subscription on December 5 and it will close on December 11.
The investment objective of the scheme is to provide regular income by investing in units of overseas ETFs where the investment mandate is to invest in US treasury securities across duration. The scheme will be benchmarked against Bloomberg US Intermediate Treasury TRI. The scheme will be managed by Vinayak Jayanath (overseas investments).
The minimum application amount will be Rs 500 and in multiples of Re 1 thereafter. The scheme will invest 95-100% in units of overseas ETFs wherein the underlying investments comprise of US treasury securities, and 0-5% in debt and money market instruments.
DSP Nifty Smallcap250 Quality 50 Index Fund
DSP Nifty Smallcap250 Quality 50 Index Fund is an open-ended scheme replicating/ tracking Nifty Smallcap250 Quality 50 Index. The new fund offer or NFO of the scheme will open for subscription on December 5 and it will close on December 15.
The investment objective of the scheme is to generate returns that are commensurate with the performance of the Nifty Smallcap250 Quality 50 Index, subject to tracking error. The scheme will be benchmarked against Nifty Smallcap250 Quality 50 TRI. The scheme will be managed by Anil Ghelani, Diipesh Shah.The minimum amount for investment will be Rs 100 and any amount thereafter. The scheme will allocate 95-100% in equity and equity related securities of companies constituting Nifty Smallcap250 Quality 50 Index, the underlying index, and 0-5% in cash and cash equivalents. The scheme will be managed passively with investments in stocks in the same proportion as in Nifty Smallcap250 Quality 50 Index. The investment strategy would revolve around minimizing the tracking error through periodic rebalancing of the portfolio, taking into account the change in weights of stocks in the indices as well as the incremental collections / redemptions in the scheme.
Motilal Oswal Small Cap Fund
Motilal Oswal Small Cap Fund is an open-ended equity scheme predominantly investing in small cap stocks. The new fund offer or NFO of the scheme will open for subscription on December 5 and it will close on December 19.
The scheme will be benchmarked against Nifty Smallcap 250 TRI. The scheme will be managed by Ajay Khandelwal, Niket Shah, Rakesh Shetty, and Ankush Sood.
The minimum application amount for lumpsum and SIP (weekly,fortnightly, and monthly) will be Rs 500 and multiple of Re 1 thereafter. The scheme will allocate 65-100% in equity and equity related instruments of small cap companies, 0-35% in equity and equity-related instruments of companies other than small cap companies including foreign companies, 0-35% in debt and money market instruments (including cash and cash equivalents), liquid and debt schemes of mutual fund, and 0-10% in units issued by REITs and InvITs.
The scheme will follow an active investment style and will seek to invest in small cap companies with a strong competitive position or economic moat, good business prospects, run by a competent management that will help them achieve good growth over the medium to long term and available at reasonable valuations.
Samco Dynamic Asset Allocation Fund
Samco Dynamic Asset Allocation Fund is an open-ended dynamic asset allocation fund. The new fund offer or NFO of the scheme will be open for subscription on December 7 and it will close on December 21.
The investment objective of the scheme is to generate income/long-term capital appreciation by investing in equity, equity derivatives, fixed income instruments and foreign securities. The allocation between equity instruments and fixed income will be managed dynamically so as to provide investors with long term capital appreciation while managing downside risk.
The performance of the scheme will be benchmarked against NIFTY50 Hybrid Composite Debt 50: 50 Index. The scheme will be managed by Paras Matalia, Umeshkumar Mehta, Abhiroop Mukherjee, and Dhawal Ghanshyam Dhanani (overseas investments).
The minimum application amount will be Rs 5,000 and in multiples of Re 1 thereafter. The scheme will allocate 0-100% in equity and equity related instruments including derivatives, and 0-100% in debt and money market instruments, including units of debt oriented mutual fund schemes.
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.
Axis US Treasury Dynamic Bond ETF FoF is the only scheme under the Treasury Dynamic Bond ETF FoF category. The scheme is benchmarked against Bloomberg US Intermediate Treasury TRI. The data for the benchmark is also not available for checking out the performance.
DSP Nifty Smallcap250 Quality 50 Index Fund is the only scheme under Nifty Smallcap250 Quality 50 Index Fund category. The scheme will be benchmarked against Nifty Smallcap250 Quality 50 TRI. The benchmark has a performance record of around six months. The benchmark has offered 27.70% in a six month period.
There are around 26 schemes in the small cap category. Around 11 schemes have a performance record of 10 years. Nippon India Small Cap Fund, the topper in the category, offered 28% in a 10-year horizon. SBI Small Cap Fund and DSP Small Cap Fund gave 26.88% and 25.03% respectively during the same time period. Axis Small Cap Fund gave 23.57%. Two schemes have offered around 22%. Two schemes gave 21%. Three schemes have offered 18% in a 10-year period.
There are around 31 schemes in the balanced advantage and dynamic asset allocation category. Around 17 schemes have a performance record of five years. HDFC Balanced Advantage Fund, the topper in the category, offered 17.05%. Baroda BNP Paribas Balanced Advantage Fund and Edelweiss Balanced Advantage Fund offered 13.95% and 12.74% respectively. Two schemes offered around 11%. Four schemes have offered 10% in a five year period. Two schemes have offered around 9%. Three schemes have offered 8% in a 10-year horizon and three schemes have offered around 7%.
