A new fund offer (NFO) is the initial subscription offer for a new scheme launched by asset management companies (AMCs). A new fund offer is introduced to the market in order to raise funds from the public in order to buy securities like shares, govt. bonds etc.
List of New Fund Offers (NFO) in November 2022
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DSP FMP Series 267 – 1246 Days
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- New Fund Launch Date: 28-Oct-2022
- New Fund Offer Closure Date: 09-Nov-2022
- Scheme Type: Close Ended
- Minimum Application Amount (Applicable only during New Fund Offer Period): Rs. 5,000/– and any amount thereafter
- The objective of the Scheme:
By investing in a portfolio of debt and money market securities, the Scheme’s main investment objective is to generate returns and capital appreciation. The Scheme will only invest in securities that mature on or before the Scheme’s maturity date. There is no assurance that the investment objective of the Scheme will be realized.
- Liquidity:
The Mutual Fund will redeem the Units of the Scheme when it reaches maturity; investors cannot redeem the Units of the Scheme directly with the Mutual Fund prior to that date. However, if investors have chosen to hold their Units in a Demat form, they may do so through stock exchange mode by including their Demat information on the NFO application form.
The option of holding units via an account statement (physical form) or in dematerialized form (Demat) is available to unitholders (Demat). Within 5 business days following the date of allocation, the units of the Scheme shall be listed on the Mutual Fund Segment of BSE Limited (BSE). At a later time, the Trustee may, in its sole discretion, list the units issued under the Scheme on any other reputable stock exchange.
The Units of the Scheme may be continuously bought or sold on the BSE and/or any other stock exchange on which they are listed during trading hours, just like any other publicly traded stock (subject to suspension of trading). The current supply and demand conditions will determine the price of the units on the market. The record date (the “Maturity Record Date”) will be one working day prior to the Maturity / Final Redemption date and will be used to identify the unit holders whose names appear on the list of beneficial owners according to the Depositories’ (NSDL/CDSL) records for the purpose of redeeming units on that date. One working day before the Maturity Record Date, the stock exchange(s) will halt trading in Units. The AMC will not send out a separate notification advising investors of the stock exchange’s suspension of trade or the maturity record date. The Fund does, however, maintain the right to modify the Maturity Record Date by providing adequate notice.
- Transparency/NAV Disclosure:
After the date of allocation, the initial NAV will be calculated and announced in 5 business days. After that, by 11 p.m. on each Business Day, the Mutual Fund must post the NAV of the Scheme on AMFI’s website (www.amfiindia.com) and the AMC website (www.dspim.com). The Unit Holders may phone the AMC office or any of the Investor Service Centers at various locations at any time to acquire information on the NAVs of the Scheme/plans.
Every business day, the segregated portfolio’s net asset value (NAV), if any, must be declared. Upon receiving a specific request in this respect, unitholders will get the most recent NAVs through SMS. Except in the extraordinary circumstances listed under “Suspension of purchase and limitation on redemption of units” in the SAI, NAV will be calculated and announced every business day.
If there is a delay, AMFI will be given a written explanation of why there was a delay. The Fund must issue a press release explaining the situation and outlining when it will be able to publish the NAVs if, for any reason, they are not accessible before the start of business hours the following day. The AMC must email weekly or half-yearly portfolios to unit holders whose email addresses are on file with the fund within five days of the end of each month or half-year. On the websites of the AMC, www.amcindia.com, and the AMFI, www.amfiindia.com, the fortnightly/half-yearly portfolio of the Scheme will be accessible in a user-friendly and downloadable spreadsheet format, viz., www.dspim.com, on or before the 5th day of the subsequent fortnight/10th day of the succeeding half year.
Every year, the AMC is required to publish an advertisement announcing the hosting of the scheme-by-scheme annual report on their respective websites as well as the website of AMFI, as well as the channels through which unit holders can request a hard copy or electronic copy of the scheme-by-scheme annual report or a summarised version of it. At least two daily newspapers, one in Hindi and one in English, must carry this advertisement in their all-Indian editions. Upon special request from a unit holder, the AMC shall, free of charge, supply a tangible copy of the statement of the Scheme portfolio.
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HDFC NIFTY IT ETF
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- New Fund Launch Date: 28-Oct-2022
- New Fund Offer Closure Date: 09-Nov-2022
- Scheme Type: Open Ended
- Minimum Application Amount: Rs. 500 per application and in multiples of Re. 1 thereafter.
- Liquidity:
Within five working days of the units being distributed under the NFO, the ETF’s units will be listed on the Capital Market Segment of the National Stock Exchange of India Ltd. (NSE) and/or BSE Limited (BSE). On the NSE and/or BSE where the Units are/will be listed during the trading hours on all trading days, all investors, including Market Makers and Large Investors, may subscribe (buy)/redeem (sell) Units continuously.
The secondary market pricing of the ETF units on the stock exchange (s) will be determined by supply and demand at that time. Although units are typically exchanged in round lots of one unit, there is no minimum trading amount. Additionally, market makers and large investors can continuously subscribe to and redeem ETF Units directly from the Fund on all business days at Intraday NAV. To ensure ongoing liquidity on the stock exchange where the ETF units are listed, AMC must name at least two market makers (MMs), who must be members of the stock exchange or other individuals approved by SEBI to function in that capacity.
For the purpose of assuring liquidity in the secondary market for the ETF Units, the market makers would provide two-way quotes (buy and sell quotes). Additionally, the AMC has the power to continuously change market makers. On the Fund’s website, www.hdfcfund.com, one may see the list of market makers. AMC may enable net settlement between the cash leg of transactions in ETF units by market makers and subsequent transactions in an underlying basket by the Scheme in accordance with the guidelines issued by SEBI/AMFI in consultation with clearing corporations/stock exchanges in this regard, as permitted by SEBI circular No. SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated May 23, 2022.
Redemption of units directly with the mutual fund during the liquidity window: Investors may approach the AMC directly to redeem ETF units for transactions up to Rs. 25 crores without incurring exit loads in the following circumstances: For seven consecutive trading days, the traded price (closing price) of the ETF units must have been at a discount of more than 1% to the day end NAV, or for three trading days, no quotes for such ETFs have been made available on the stock exchange(s), or for three trading days, the total bid size on the exchange must have been less than half of the daily average number of creation units.
Such occurrences shall be continuously monitored by the AMC, and should any of the aforementioned scenarios occur, said circumstance shall be disclosed on the mutual fund’s website. For more information, see the paragraphs titled “Settlement of Purchase/Sale of Units of the Scheme on NSE and BSE” and “Rolling Settlement” on Page 49 under the heading “Cut off timing for subscriptions/redemption/switches.”
- Dematerialization:
The sole form in which the units of the scheme are obtainable is dematerialized (electronic). When purchasing units directly from the fund in Creation Unit Size, investors planning to invest in the ETF will need to have a beneficiary account with a Depository Participant (DP) of NSDL/CDSL. They will also need to mention the DP’s name, DP ID No., and Beneficiary Account No. with the DP in the application form. The dematerialized (electronic) form will be used for all aspects of the scheme’s unit issuance, trading, and settlement requirements.
- Transparency:
The first NAVs of the Scheme will be calculated and disclosed by the AMC no later than five business days after the date on which units were allotted under the NFO. At the end of each Business Day, the AMC will compute and disclose the NAVs under the Scheme. The NAVs must be disclosed in the manner listed below, per SEBI requirements: I) Displayed on the Association of Mutual Funds in India (AMFI) website (www.amfiindia.com) II) Displayed on the Mutual Fund website (www.hdfcfund.com) iii) In any other manner that SEBI may from time to time specify. Additionally, the stock exchange(s) on which the units will be listed must be informed of the same.
Every business day, the Net Asset Value (NAV), if any, of the Segregated Portfolio must be disclosed. Upon receiving a specific request in this regard, the mutual fund/AMC will offer unitholders the option of getting the most recent NAVs through SMS. Every business day, by 11 p.m., AMC must update the NAVs on the Fund and AMFI websites.
If there is a delay in posting information on the AMFI website, AMFI and SEBI will be given a written explanation of the situation. If for any reason, the NAVs cannot be made available before the start of business hours the following day, the mutual fund must issue a press release outlining the situation and stating when it will be able to publish the NAVs.
- Indicative NAV (iNAV):
During the ETF’s trading hours, the indicative NAV (iNAV), or per-unit NAV, is calculated based on the portfolio’s current market value. During trading hours, iNAVs must be continuously published on the stock exchange(s) where the ETF’s units are listed and updated with a maximum 15-second lag from the underlying market. The Market Makers’ or Large Investors’ direct creation or redemption of units with the Fund will not be impacted by iNAV in any way.
Within 10 days of the end of each month or half-year, the mutual fund/AMC will post the portfolio of the Scheme (along with the ISIN and other required details) in the prescribed format on its website, www.hdfcfund.com, and on the website of the Association of Mutual Funds in India (AMFI), www.amfiindia.com. These postings will be made on March 31 and September 30, respectively. The Mutual Fund/AMC shall deliver the monthly and half-yearly statements of the scheme portfolio by email to unitholders whose email addresses are registered within 10 days of the closure of each month or half-year, accordingly.
Every six months, a mutual fund or AMC will place an ad in the Hindi and English editions of at least two national daily newspapers announcing the availability of the scheme portfolio’s half-yearly statement on both their own and the Association of Mutual Funds in India’s websites (AMFI). Upon explicit request from a unitholder, a mutual fund or AMC shall give a tangible copy of the statement of its scheme portfolio, free of charge.
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HDFC NIFTY Private Bank ETF
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- New Fund Launch Date: 28-Oct-2022
- New Fund Offer Closure Date: 09-Nov-2022
- Scheme Type: Open Ended
- Minimum Application Amount: Rs. 500 per application and in multiples of Re. 1 thereafter.
- Liquidity:
Within five working days of the units being distributed under the NFO, the ETF’s units will be listed on the Capital Market Segment of the National Stock Exchange of India Ltd. (NSE) and/or BSE Limited (BSE). On the NSE and/or BSE where the Units are/will be listed during the trading hours on all trading days, all investors, including Market Makers and Large Investors, may subscribe (buy)/redeem (sell) Units continuously.
The secondary market pricing of the ETF Units on the stock exchange(s) will be determined by supply and demand at that time. Although units are typically exchanged in round lots of one unit, there is no minimum trading amount. Additionally, market makers and large investors can continuously subscribe to and redeem ETF Units directly from the Fund on all business days at Intraday NAV. To ensure ongoing liquidity on the stock exchange where the ETF units are listed, AMC must name at least two market makers (MMs), who must be members of the stock exchange or other individuals approved by SEBI to function in that capacity.
For the purpose of assuring liquidity in the secondary market for the ETF Units, the market makers would provide two-way quotes (buy and sell quotes). Additionally, the AMC has the power to continuously change market makers. On the Fund’s website, www.hdfcfund.com, one may see the list of market makers. AMC may enable net settlement between the cash leg of transactions in ETF units by market makers and subsequent transactions in the underlying basket by the Scheme in accordance with the guidelines issued by SEBI/AMFI in consultation with clearing corporations/stock exchanges in this regard, as permitted by SEBI circular No. SEBI/HO/IMD/DOF2/P/CIR/2022/69 dated May 23, 2022.
Direct unit redemption with the mutual fund during the liquidity window: Investors may approach the AMC directly to redeem ETF units for transactions up to Rs. 25 crores without incurring exit loads in the following circumstances: For seven consecutive trading days, the traded price (closing price) of the ETF units must have been at a discount of more than 1% to the day end NAV, or for three trading days, no quotes for such ETFs have been made available on the stock exchange(s), or for three trading days, the total bid size on the exchange must have been less than half of the daily average number of creation units. Such occurrences shall be continuously monitored by the AMC, and should any of the aforementioned scenarios occur, said circumstance shall be disclosed on the mutual fund’s website. For more information, see the paragraphs titled “Settlement of Purchase/Sale of Units of the Scheme on NSE and BSE” and “Rolling Settlement” on Page 49 under the heading “Cut off timing for subscriptions/redemption/switches.”
- Dematerialization:
The sole form in which the units of the scheme are available in dematerialized (electronic). When purchasing units directly from the fund in Creation Unit Size, investors planning to invest in the ETF will need to have a beneficiary account with a Depository Participant (DP) of NSDL/CDSL. They will also need to mention the DP’s name, DP ID No., and Beneficiary Account No. with the DP in the application form. The dematerialized (electronic) form will be used for all aspects of the scheme’s unit issuance, trading, and settlement requirements.
- Transparency:
The first NAVs of the Scheme will be calculated and disclosed by the AMC no later than five business days after the date on which units were allotted under the NFO. At the end of each Business Day, the AMC will compute and disclose the NAVs under the Scheme. The NAVs must be declared in the ways listed below, per SEBI regulations: I On the mutual fund’s website (www.hdfcfund.com) ii) Shown on the Association of Mutual Funds in India (AMFI) website (www.amfiindia.com). iii) In any other manner that SEBI may from time to time specify.
Additionally, the stock exchange(s) on which the units will be listed must be informed of the same. Every business day, the Net Asset Value (NAV), if any, of the Segregated Portfolio must be disclosed. Upon receiving a specific request in this regard, Mutual Fund/AMC will offer unitholders the option of getting the most recent NAVs through SMS. Every business day, by 11 p.m., AMC must update the NAVs on the Fund and AMFI websites. If there is a delay in posting information on the AMFI website, AMFI and SEBI will be given a written explanation of the situation.
If for any reason, the NAVs cannot be made available before the start of business hours the following day, the mutual fund must issue a press release outlining the situation and stating when it will be able to publish the NAVs.
- Indicative NAV (iNAV)
During the ETF’s trading hours, the indicative NAV (iNAV), or per-unit NAV, is calculated based on the portfolio’s current market value. During trading hours, iNAVs must be continuously published on the stock exchange(s) where the ETF’s units are listed and updated with a maximum 15-second lag from the underlying market. The Market Makers’ or Large Investors’ direct creation or redemption of units with the Fund will not be impacted by iNAV in any way.
Within 10 days of the end of each month or half-year, the mutual fund/AMC will post the portfolio of the Scheme (along with the ISIN and other required details) in the prescribed format on its website, www.hdfcfund.com, and on the website of the Association of Mutual Funds in India (AMFI), www.amfiindia.com. These postings will be made on March 31 and September 30, respectively. The Mutual Fund/AMC shall deliver the monthly and half-yearly statements of the scheme portfolio by email to unitholders whose email addresses are registered within 10 days of the closure of each month or half-year, accordingly.
Every six months, a mutual fund or AMC will place an ad in the Hindi and English editions of at least two national daily newspapers announcing the availability of the scheme portfolio, free of charge.
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