Introduction
September 2024 offers a wide range of New Fund Offers (NFOs) from some of the biggest names in asset management. If you are considering portfolio diversification or are on the lookout for new investment avenues, this month will be power-packed with options in all kinds of sectors and strategies. Here are some upcoming NFOs and how they can complement your investment strategy.
What is an NFO?
An NFO represents an offer by an Asset Management Company (AMC) of a new mutual fund scheme to the public for the first time. You can think of it as the mutual fund equivalent of an Initial Public Offering (IPO) in the stock market. Sometimes, NFOs provide investment opportunities in an emerging sector or innovative strategy that is not available through funds already in existence.
Upcoming NFOs in September 2024
Here are some important NFOs you can look out for in the month of September:
1. Bandhan Business Cycle Fund (G) & (I)
NFO period: 10 Sep 2024 - 24 Sep 2024
Bandhan Business Cycle Fund endeavours to leverage various phases of the business cycle. It aims to invest in such sectors and companies that, according to its estimation, are likely to thrive during the different phases of the economic cycle. This fund could offer just the right mix of growth sectors in an upswing economy or defensive sectors when the economy is slowing down.
Why consider it?
The Business Cycle Fund offers to capture an economic trend and, hence, diversify risks associated with market volatility.
Things to watch:
​​​​​​​The fund's close linkage to the economic cycle suggests that it would be best suited to investors with a moderate to high risk tolerance.
2. Bandhan Nifty Midcap 150 Index Fund (G)
NFO period: 03 Sep 2024 - 13 Sep 2024
This index fund tracks the Nifty Midcap 150 Index, comprising the top 150 mid-cap companies listed on the NSE. Midcap companies generally offer the perfect blend of risk and return as they promise higher growth opportunities than large caps while being less volatile than small caps.
Why consider it?
This could be an ideal fund in case you are seeking exposure in midcap companies that hold the potential to rise.
Things to watch:
Midcap stocks are more volatile than large-cap issues. Be sure this fits your risk profile.
3. Edelweiss Nifty Bank ETF (G)
NFO period: 03 Sep 2024 - 06 Sep 2024
The Edelweiss Nifty Bank ETF is related to the banking sector and provides an exceptionally good way to harness one of the most vibrant sectors of the economy. This would track the Nifty Bank Index comprising large Indian banks that are pretty well-placed to benefit from the growth in the economy.
Why consider it?
The banking sector is a very important part of the economy, and this ETF offers targeted exposure to that sector, positioning it to benefit from the firming of interest rates and economic growth.
Things to watch:
Sector-focused funds can be volatile since they have limited diversification. Ensure that you are comfortable with a focused exposure to banking stocks.
4. Franklin India Medium to Long Duration Fund (G) & (I)
NFO period: 03 Sep 2024 - 17 Sep 2024
This fund primarily invests in medium- to long-duration debt securities with the goal of generating stable returns for its investors. It is set up to take advantage of changes in the interest rate while providing regular income.
Why consider it?
Ideal for conservative investors seeking stability in their portfolio but aiming for more income than from short-duration funds.
Things to watch:
Interest rate changes may influence performance, and the prevailing interest rate environment must be taken into consideration.
5. HSBC India Export Opportunities Fund (G) & (I)
NFO period: 05 Sep 2024 - 19 Sep 2024
This fund focuses on companies better positioned to benefit from India's fast-growing export industries. As world trade dynamics change, this fund will capture growth in industries such as information technology, pharmaceuticals and manufacturing.
Why consider it?
Investing in export-oriented firms provides a leeway to take some exposure to international markets outside of pure domestic plays.
Things to watch:
Since this fund has pegged its performance to global trade policies and currency exchange rates, it could be very volatile.
To sum it up
NFOs that hit the markets this September 2024 cater to different investment strategies, risk appetites, and market outlooks. Whether you are aiming at stable income from debt funds, growth in midcap or sector-specific funds, or diversified exposure via index funds, there's something for everyone. As always, ensure your investment picks resonate with your goals and risk tolerance. Happy investing!
Financial Calculators: SIP Calculator | SWP Calculator | Compound Interest Calculator | EMI Calculator | FD Calculator | Retirement Calculator | Option Value Calculator | Inflation Calculator | Lumpsum Calculator
Popular Stocks: ICICI Bank Share Price | HDFC Bank Share Price | CDSL Share Price | UPL Share Price | TCS Share Price | BHEL Share Price | Trident Share Price | IRFC Share Price | Adani Power Share Price