MFs unveil three new innovative schemes
PFW Bureau / Nov 17
The Mutual Fund (MF) industry has unveiled three innovative funds for the retail investors this week. Franklin MF has announced the launch of Asia Equity Fund.
Similarly, ICICI Prudential Mutual Fund aims to take the first movers advantage in the real estate fund space and has designed debt oriented Real Estate Securities Fund.
Another fund house, Sundaram BNP Paribas Select Thematic Fund has launched Select Thematic Funds Energy Opportunities.
Following is the details on the three new funds:
Scheme I
Franklin Templeton to launch Franklin Asian Equity Fund
Franklin Templeton Investments (India) has launched an open ended equity fund called Franklin Asian Equity Fund (FAEF). The fund invests in companies in the Asian region (except Japan) and Asia-related companies across market capitalisation ranges.
The New Fund Offer (NFO) period will be from November 19 to December 18 during which, units will be available at Rs 10 per unit (plus applicable load).
After the launch of the fund, Vivek Kudva, president, Franklin Templeton India said, “Leading Asian economies have been exhibiting strong growth, helped by strong exports and growing domestic consumption. The positive macroeconomic landscape has helped Asian companies to grow in stature over the past few years, some of which have transformed themselves into global players. The strong economic and corporate fundamentals have resulted in global investors increasing their allocation to Asian markets, including India. While Indian equity markets have turned in a good performance in recent years, there are quite a few Asian markets which have done better. In that sense, this fund will not only help Indian investors in improving the diversification of their portfolio but will also have a long term return potential similar to that of Indian markets”.
NFO Features
New Fund Offer : November 19 – December 18
Scheme Re-opening on : January 17
Minimum Investment : Rs.5000 and in multiples of Re.1 thereafter
Options : Growth & Dividend (Payout & Reinvestment)
Load : Entry: Upto Rs 5 Crs: 2.25%, More than Rs 5 Crs: Nil
Exit: Rs 5 Crs: 0.5% (for redemption
within1 year of allotment), More than Rs 5
Crs: 1% (for redemption within 6
months of allotment)
Scheme II
ICICI Prudential MF launches Real Estate Securities Fund
ICICI Prudentia MF launched ICICI Prudential Real Estate Securities Fund. The fund is a 3 year close-ended debt fund designed to invest in real estate sector and real estate oriented sectors like cement, construction, metals, hotels, retail, banks and finance companies.
The fund will predominantly invest (51% to 100%) in high yielding debt securities issued by companies that are associated with or benefiting from the real estate sector. It will invest up to 49% in equity of companies, which are engaged in
industries that benefit from the real estate sector or have substantial investments in property (including land holdings).
After the launch of the fund, Nimesh Shah, managing director, ICICI Prudential Asset Management Company, “Indian real estate sector is growing rapidly and is expected to register a growth rate of over 30% per annum in next five years. It is the second largest employer next only to agriculture and has significant linkages with several other sectors and industries of the economy. Thus, through this fund investors will get an opportunity to participate in the real estate sector."
He further added, "The prospects for real estate industry in India look buoyant. All the factors which contributed to the growth of real estate sector - high disposable incomes, sharp increase in global liquidity, selective capital account liberalization, a greater availability of leverage due to financial liberalization and a consequent increase in mortgage lending and price increases - look set to continue."
The retail investors may note here that SEBI is yet to take a final decision on the draft proposal on real estate fund and DIF. The MF industry is waiting for the final guidelines on these two proposed funds.
Scheme III
Sundaram’s Select Thematic Fund to close on Dec 11
Sundaram BNP Paribas Mutual Fund has launched Sundaram BNP Paribas Select Thematic Funds Energy Opportunities. The three years closed ended equity scheme will convert into an open ended scheme on the completion of three years.
After the launch of the fund, TP Raman, managing director, Sundaram BNP Paribas MF will invest in the energy sector – gas production and distribution, oil, non-conventional energy, power, refineries and related infrastructure service providers.
“The investment objective of the thematic fund is to seek long term capital appreciation by investing primarily in equity and equity-related instruments of companies in the domestic market that focus in the energy sector”, he said.
The issue of the unit is at Rs 20 each for cash and there is no entry or exit load. The thematic scheme will be benchmarked against BSE Oil and Gas Index. The fund opened for subscription on November 12 and it will close on December 11.
Fund Synopsis:
Fund Name: Sundaram BNP Paribas Select Thematic Funds Energy Opportunities
Fund Type: A closed-end equity scheme
Minimum application of Rs 5,000 and minimum additional purchase of Rs 500
Investment Option: Growth & Dividend – payout
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