Mutual funds offer a simple and effective way of investing money. The popularity of mutual funds is rising in India. Given this rising popularity mutual fund houses launch New Fund Offers frequently.
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Amid the rising popularity of mutual funds, three New Fund Offers (NFOs) were launched on January 28 by the Bank of India And UTI Mutual Fund. Here’s a look at some key features of the NFOs:
Bank of India Money Market Fund
Bank of India Mutual Fund has launched an open-ended debt scheme which invests in money market instruments which have a maturity of up to one year. The scheme has a relatively low interest rate risk and moderate credit risk.
Subscription Period
The Bank of India Money Market Fund opened for subscription on January 28 and is scheduled to close on February 03. The fund house said that the scheme will re-open for subscription on February 05.
Objective of Scheme
The investment objective of the scheme is to generate returns and offer reasonable liquidity to the unitholders by investing in money market instruments.
Who Is The Product Suitable For
As per the scheme information document the scheme is suitable for investors who are seeking regular income over the short to medium term and wish to invest in money market instruments with a maturity period of up to one year.
What Is The Benchmark Index For The Scheme
The Bank of India Money Market Fund tracks the CRISIL Money Market A-1 Index.
Investment Plans Offered
The scheme can be invested in via both a regular plan and a direct plan. The Direct Plan is only for investors who purchase units in a scheme directly with the fund. On the other hand, the Regular Plan is available for all types of investors investing through a distributor.
Minimum Subscription Amount
During the NFO investors can subscribe to the scheme by investing a minimum of Rs. 5,000 and in multiples of Re 1 thereafter. On a continuous basis investors can invest a minimum of Rs. 5,000 and in multiples of Re 1 thereafter.
Minimum Redemption Amount
The minimum redemption or switch-out amount for the scheme is Rs. 1000 (or equivalent Unit value) or account balance, whichever is lower.
UTI Nifty India Manufacturing Index Fund
The UTI Nifty India Manufacturing Index Fund is an open-ended scheme which replicates the Nifty India Manufacturing Total Returns Index.
Subscription Period
The subscription period for the New Fund Offer Period begins on January 28 and closes on February 10. The scheme will reopen for subscription on February 18.
Investment Objective
The investment objective of the scheme is to generate returns which correspond to the total return of the securities as represented by the underlying index (Nifty India Manufacturing TRI) subject to tracking error.
Who Is The Scheme Suitable For
As per the scheme information document the scheme is suitable for investors who want returns that are commensurate with the performance of the Nifty India Manufacturing Index over the long-term and wish to invest in securities covered by the Nifty India Manufacturing Index.
Investment Plans Offered
The scheme offers investment under both a regular plan option and a direct plan. Both the Plans offer only growth options. However, the direct plan is only for investors who purchase units directly with the fund. The direct plan will have a separate plan under the scheme and shall have a lower expense ratio excluding distribution expenses, commission etc. and will have a separate NAV.
Minimum Application Amount
The Minimum amount of initial investment is Rs. 1,000 and in multiples of Re.1 thereafter. The subsequent minimum investment amount under a folio is Rs.1,000 and in multiples of Re. 1 thereafter with no upper limit.
The minimum SIP amount for Daily, Weekly and Monthly SIP is Rs. 500 and in multiples of Re. 1 thereafter. The minimum SIP amount for Quarterly SIP is Rs. 1,500 and in multiples of Re. 1 thereafter.
Minimum Redemption Amount
The minimum redemption amount for the scheme is Rs. 1,000 and in multiples of Re. 1 thereafter. In case of partial redemption, if the balance amount held in the unit holder’s account under the plan of the scheme is less than the minimum investment amount, then the transaction shall be treated as an all-units redemption and the entire balance of available units in the folio the account of the unit holder shall be redeemed.
UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund
UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund is an open-ended scheme which replicates the Nifty Midsmallcap 400 Momentum Quality 100 Total Returns Index.
Subscription Period
The subscription period for the New Fund Offer Period begins on January 28 and closes on February 10. The scheme will reopen for subscription on February 18.
Investment Objective
The investment objective of the scheme is to provide returns that correspond to the total return of the securities as represented by the underlying index(Nifty Midsmallcap 400 Momentum Quality 100).
Who Is The Scheme Suitable For
The UTI Nifty Midsmallcap 400 Momentum Quality 100 Index Fund is ideal for investors who want returns that are commensurate with the performance of the Nifty Midsmallcap 400 Momentum Quality 100 Index over the long-term and wish to invest in securities covered by the benchmark index.
Investment Plans Offered
The scheme offers investment under both direct and regular plans. However, both plans offer only the Growth Option.
Minimum Application Amount
Investors apply for the scheme by making a minimum initial investment of Rs. 1,000 and in multiples of Re. 1 thereafter. The subsequent minimum investment amount under a folio is Rs. 1,000/- and in multiples of Re. 1/- thereafter with no upper limit.
The minimum SIP amount for Daily, Weekly and Monthly SIP is Rs.500 and in multiples of Re. 1 thereafter. The minimum SIP amount for Quarterly SIP is Rs. 1,500 and in multiples of Re. 1 thereafter.
Minimum Redemption Amount
The minimum redemption amount for the scheme is Rs.1,000 and in multiples of Re.1 thereafter. If the investor wishes to make a partial redemption and the balance amount held in the scheme is less than the minimum investment amount, then the transaction shall be treated as an all-units redemption and the entire balance available will be redeemed.
