Nippon India AMC has launched a new fund offer (NFO) for a multi-asset fund. Nippon India Multi Asset Fund NFO will be an open-ended scheme investing in different asset classes: stocks, debt and gold. The NFO opens on August 7 and closes on August 21.
The fund will be in a mix of assets. For its equity component, the fund will have both domestic and overseas equity exposure. For the debt component, the fund will invest in money market and other debt instruments and for commodities, the fund will invest in gold ETFs and exchange-traded commodity derivatives.
Here’s how much money will be allocated to each of the components:
Overseas equities: 20%
Debt and Money Market Instruments: 15%
The overall allocation of each of the components will be maintained within the following range.
Equity and equity-oriented securities (overseas may be included): 50 to 80%
Debt and Money Market Instruments: 10-20%
Commodities: 10 – 30%
The scheme will be using the following indices to benchmark its performance:
50% of S&P BSE 500: BSE 500 is an index that has top 500 companies listed on the Bombay Stock Exchange according to their market capitalisation.
20% of Crisil Short Term Bond Fund Index: This index tracks the performance of a debt portfolio that includes government securities, AAA/AA+/AA rated corporate bonds, commercial papers and certificate of deposits.
30% of Thomson Reuters – MCX iCOMDEX Composite Index: The index is made up of 11 commodities for 2019: Natural Gas, Crude Oil, Aluminium, Lead, Copper, Nickel, Zinc, Crude Palm Oil, Gold, Silver, and Cotton.
Plans and Options: The fund will have both the options: growth and dividend. You can choose t take the growth plan or opt for dividends. The fund also has two variants of plans: direct plan and regular plan.
In case you have opted for the dividend option and your dividend payout is less than Rs 100, it will be automatically reinvested in the plan. Dividend amount of more than Rs 100 will be either transferred to you or reinvested, depending on your choice.
Find other details on the NFO below:
|Name of the Fund||Nippon India Multi Asset Fund|
|Type of Scheme||An open-ended scheme investing in equity:: domestic and overseas, debt and money market instruments and exchange-traded commodity derivatives and Gold ETFs|
|Equity category||Multi Asset Fund|
|Benchmark||50% of S&P BSE 500, 20% of Crisil Short Term Bond Fund Index & 30% of Thomson Reuters – MCX iCOMDEX Composite Index|
|NFO Dates||Opens on August 7, 2020, and closes on August 21, 2020|
|Fund Manager||Manish Gunwani and Ashutosh Bhargava- equity
Kinjal Desai- overseas
Amit Tripathi- fixed income
Vikram Dhawan- commodities
|Minimum Application Amount/Minimum Purchase Amount||Rs. 5000 and in multiples of Re. 1 after that|
|Minimum Additional Investment||Rs 1,000 and in multiples of Re 1 after that|
|Minimum Redemption Amount||Rs 100 or any number of units|
|Exit Load||1%- If redeemed before the completion of 1 year from the date of allotment
Nil- If redeemed after one year
|Plans||Regular Plan and Direct Plan|
|Options||Growth and Dividend Option|
Details for SIP Investment in the Fund
Manish Gunwani- CIO Equity
Mr Gunwani’s experience in equity research and fund management spans across 22 years. He graduated from IIT Chennai with a B.Tech and has a Post Graduate Diploma in Management from IIM Bangalore.
Ashutosh Bhargava- Fund Manager and Head Equity Research
Mr Bhargava has over 15 years experience in investment research. He specialises in macro and rule-based investment strategies. He has done an MBA in Finance from NMIMS (Deemed University), Mumbai.
Kinjal Desai- Fund Manager Overseas
Ms Desai has an experience of 7 years as Research Analyst- Equities at Nippon India AMC where she started her career. Kinjal has obtained her Masters in Economics from Warwick University, UK.
Amit Tripathi- CIO Fixed Income
Mr Tripathi has over 21 years of experience in financial services out of which he has spent around 14 years with Nippon India MF. During his time at the AMC, he has engaged himself in portfolio management activities, combining experience across the yield curve and credit evaluation.
Vikram Dhawan- Head Commodities
Mr Dhawan has over two decades of experience in fund management, corporate and banking investments-India and Overseas, commodities and enterprise risk management.
To Sum Up.
Under strict guidelines permitted by Securities and Exchange Board of India (Sebi) this fund seeks to achieve long term capital growth through its multi-asset allocation. However, all mutual fund schemes are subject to market risks and there is no 100% guarantee that a fund manager will be able to achieve this objective in entirety. Please conduct the necessary due diligence before investing.