This week is special for mutual fund investors because seven new mutual fund schemes (NFOs) are opening for subscription across different categories.
These include equity thematic funds, ETFs, ETF FOF, silver funds, ESG funds, and low-duration debt funds.
Mutual fund companies launch NFOs to expand their product range and give investors opportunities to invest in new themes and asset classes. Below is a simple explanation of each fund.
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Overview of New Mutual Fund NFOs
The new funds launching this week cover multiple investment themes such as metals, silver, ESG, healthcare, and business cycles. Each fund has a different risk level and investment objective, making them suitable for different types of investors.
Mirae Asset Nifty Metal ETF FOF
The Mirae Asset Nifty Metal ETF FOF is designed for investors who want exposure to the metals sector without selecting individual stocks. The fund will invest in the Mirae Asset Nifty Metal ETF, and its performance will follow the NIFTY Metal TRI index.
The metals sector is closely linked to infrastructure development, capital expenditure, and global demand, which makes it highly volatile. Therefore, this fund carries a high risk.
NFO period: February 10 to February 23
Minimum investment: ₹5,000
Bajaj Finserv Low Duration Fund
The Bajaj Finserv Low Duration Fund is suitable for investors looking for a relatively safe investment for a short period. It will invest in debt and money market instruments, with a Macaulay duration of 6 to 12 months.
The fund aims to provide stable returns with good liquidity and has a moderate risk level, making it less volatile than equity funds.
NFO period: February 9 to February 16
Angel One Silver ETF FOF
Silver investments are becoming popular as investors look for diversification beyond gold and equities. The Angel One Silver ETF FOF will not directly buy silver but will invest in the Angel One Silver ETF.
The fund’s performance will be linked to domestic silver prices. It is attractive for small investors due to its low minimum investment but carries high risk because it is a commodity-based fund.
NFO period: February 9 to February 23
Minimum investment: ₹500
Baroda BNP Paribas ESG Best-in-Class Strategy Fund
ESG (Environmental, Social, and Governance) investing has become an important long-term investment theme. The Baroda BNP Paribas ESG Best-in-Class Strategy Fund will invest in companies with strong ESG performance.
This is an actively managed equity fund focused on long-term capital appreciation.
NFO period: February 12 to February 26
Benchmark: NIFTY 100 ESG TRI
ITI Business Cycle Fund
The ITI Business Cycle Fund is designed for investors who want to benefit from different phases of the economy. The fund will dynamically allocate investments across sectors and stocks based on the business cycle.
During economic growth, it will increase equity exposure, while during slowdowns, it will focus on defensive sectors. This fund has a high risk profile.
NFO period: February 13 to February 27
Groww BSE Hospitals ETF
The Groww BSE Hospitals ETF focuses on the healthcare and hospital sector, which is considered a strong long-term investment theme.
The fund will track the BSE Hospitals Index and aims to deliver returns similar to the index, though tracking errors may occur.
It is suitable for investors who prefer passive investment in the healthcare sector.
NFO period: February 11 to February 25
Angel One Silver ETF
The Angel One Silver ETF will invest directly in physical silver and silver-related instruments. Its performance will depend on domestic silver prices.
This fund is suitable for investors who want to increase their exposure to commodities, but it carries high risk due to sharp price fluctuations.
NFO period: February 9 to February 19