Upcoming NFOs in November 2024

November 2024 is set to bring several new fund offerings (NFOs) to India’s mutual fund landscape, providing fresh investment opportunities across a wide range of asset classes. These NFOs include sector-specific funds, thematic funds, index funds, and multi-cap funds, giving investors diverse options to consider based on their risk tolerance and financial goals. 

In this blog, we’ll examine each NFO in detail, providing insights into the fund objectives, key features, and potential benefits.

Upcoming NFOs in November 2024

Here’s a snapshot of the key NFOs launching in November 2024:

Detailed Analysis of Upcoming NFOs in November 2024

1. Shriram Multi-Sector Rotation Fund

• Category: Equity – Sectoral/Thematic
• Fund Manager: Deepak Ramaraju
• Objective: The Shriram Multi Sector Rotation Fund aims to capitalise on growth opportunities across multiple sectors by adopting a sector rotation strategy. This approach is designed to allocate assets dynamically across sectors expected to outperform based on economic trends and market cycles.
• Features:
  • Sector rotation strategy that may mitigate sector-specific risks
  • Suitable for investors seeking diversification across high-performing sectors
  • Minimum NAV price of ₹10, making it accessible for retail investors
• Risks and Considerations: Sector-focused funds can be volatile, and performance may vary based on economic cycles. It’s ideal for investors with moderate to high-risk tolerance.

2. Franklin India Arbitrage Fund

• Category: Arbitrage Fund
• Fund Manager: Anandha Padmanabhan Anjen
• Objective: Designed to exploit price discrepancies between cash and derivatives markets, Franklin India Arbitrage Fund provides a low-risk alternative within the equity mutual fund space. The fund aims to generate returns by taking offsetting positions in different segments of the market, capitalising on short-term arbitrage opportunities.
• Features:
  • Relatively low-risk due to hedging strategies
  • Ideal for conservative investors seeking stable, low-risk returns in equity markets
  • Target NAV price of ₹10
• Risks and Considerations: Although relatively safe, arbitrage funds are vulnerable to market liquidity risks. These funds may not yield high returns but offer stability for risk-averse investors.

3. Aditya Birla Sun Life Crisil-IBX AAA Financial Services Index-Sep2027 Fund

• Category: Index Fund
• Fund Manager: Harshil Suvarnkar
• Objective: This index fund offers investors exposure to AAA-rated financial services, specifically following the Crisil-IBX AAA Financial Services Index, with a target maturity of September 2027. Designed to provide safe and steady returns, it’s an attractive choice for investors looking for exposure to the financial services sector with lower risk.
• Features:
  • Focuses on high-rated, low-risk financial service entities
  • Suitable for conservative investors aiming for steady returns until 2027
  • Initial NAV price of ₹10 with a ₹1,000 crore issue size
• Risks and Considerations: Index funds are generally less volatile than other equity funds, but returns may be limited compared to actively managed funds. Suitable for investors prioritising capital preservation.

4. Shriram Liquid Fund

• Category: Debt – Liquid Fund
• Fund Manager: Deepak Ramaraju
• Objective: The Shriram Liquid Fund is geared towards providing liquidity with minimal risks by investing in short-term, highly liquid instruments. Liquid funds like this are often used as a cash management tool, offering flexibility for investors who may need quick access to their funds.
• Features:
  • Highly liquid, making it suitable for cash flow management
  • Ideal for conservative investors or those seeking short-term parking for surplus funds
  • Minimum investment starting at ₹1,000, aimed at serious investors with substantial capital
• Risks and Considerations: Minimal risk, but returns are typically lower than other investment vehicles. Ideal for those needing quick access to cash with a stable return.

5. PGIM India Healthcare Fund – Regular

• Category: Equity – Sectoral/Thematic
• Fund Manager: Anandha Padmanabhan Anjen
• Objective: The PGIM India Healthcare Fund seeks to tap into growth within the healthcare sector, which has gained traction post-pandemic. This fund is ideal for investors looking to capitalise on innovations in biotechnology, pharmaceuticals, and healthcare services.
• Features:
  • Focuses on the expanding healthcare sector in India
  • Ideal for long-term investors with an interest in the sector’s growth potential
  • Expected to be moderately risky due to sectoral concentration
• Risks and Considerations: As with any thematic fund, this healthcare-focused fund may be volatile, affected by industry-specific regulations, and global health events. Suitable for investors with a higher risk tolerance and long-term investment horizon.

6. Groww Multicap Fund – Regular

• Category: Equity – Multi Cap Fund
• Objective: The Groww Multicap Fund is a diversified fund that invests across small-cap, mid-cap, and large-cap stocks. This strategy provides balanced exposure to various segments of the market, aiming to reduce risk through diversification.
• Features:
  • Diversified across market caps to manage risk while providing growth potential
  • Suitable for investors looking for moderate risk and steady returns over time
• Risks and Considerations: The fund’s performance depends on the allocation across different market cap segments, which may vary with economic cycles. Ideal for long-term investors seeking a balance of stability and growth.

How to Apply for NFOs?

Investors can subscribe to NFOs through their bank’s net banking platform or through a brokerage account. Mutual fund platforms, such as Angel One, offer streamlined processes for investors to apply directly through their apps or websites. Here are some tips:

• Research Fund Objectives: Assess if the fund aligns with your financial goals.
• Evaluate Risk and Return: Consider both your risk tolerance and return expectations before investing.
• Consider Investment Horizon: Some funds, like the Aditya Birla Sun Life Index Fund, are designed with target dates, while sectoral funds may benefit from longer investment horizons.
• Fund Manager’s Experience: Experienced fund managers bring insights that can enhance fund performance.

Conclusion

November 2024’s NFO lineup offers a range of choices for investors, from conservative debt and liquid funds to sectoral equity funds targeting high-growth sectors. Whether you’re seeking stability, sector-specific growth, or exposure to the evolving healthcare sector, the market’s cyclicality, or multi-cap diversification, there’s an NFO to match nearly every investment profile. By thoroughly evaluating each fund’s objectives, strategies, and risk levels, investors can make informed decisions tailored to their financial goals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.