The new fund offer or NFO of the scheme is open for subscription and will close on August 30. The scheme will be available for on-going repurchase and sale within five business days of allotment.
The investment objective of the scheme is to achieve long-term capital appreciation by investing predominantly in equity and equity-related securities of innovative companies.
The scheme will be benchmarked against Nifty 500 Index (TRI). The scheme will be managed by Hardick Bora, and Sanjay Bembalkar.
The minimum application amount required is Rs 1,000 and in multiples of Re 1 thereafter. The scheme will invest 80-100% in equity and equity-related instruments of innovative companies, 0-20% in equity and equity-related instruments of other companies, 0-20% in debt and money market instruments, and 0-10% in units issued by REITs and InvITs.
The scheme will offer a regular plan and direct plan – with growth and IDCW options.The scheme is suitable for investors who are seeking capital appreciation over the long term.Should you invest in the scheme? ETMutualFunds always ask investors to invest in an NFO only if it offers something unique – that is, some investment option that is not available in the market or adding something to the existing available option. Also, we do not recommend sector or thematic schemes to new and inexperienced investors. Sector or thematic schemes go through phases based on economic conditions. Inexperienced investors will find it extremely difficult to deal with prolonged periods of losses or underperformance.
There is only one scheme based on innovation theme available for investment in the market. ICICI Prudential Innovation Fund has completed around three months of existence and offered 14.07%. Two schemes – Nippon India Innovation Fund and Union Innovation & Opportunities Fund – are open for subscription in the market.
Finally, you don’t have any scheme with a long-term record to bet on the innovating theme. If you are upbeat about the theme, you can bet on the theme by investing in a scheme run by your favourite fund house.
