After the success of new mutual fund offers (NFOs) in 2024, fund houses are continuing to introduce innovative schemes in 2025. Two new NFOs will be launched on January 24, 2025.
One focuses on Multi Asset Allocation, while the other is based on the Nifty 500 Momentum 50 Index theme.
If you’re looking to invest in a new mutual fund, January 24 is a good opportunity to explore these options.
How NFOs Work
An NFO allows investors to buy mutual fund units at a subscription price, typically Rs 10 per unit. These funds can either be open-ended or close-ended and are available for a limited time.
Once the NFO period ends, the mutual fund units are traded based on their net asset value (NAV). Since NFOs are new, they are generally priced lower,
and fund houses provide detailed information about the fund’s category, benchmark index, and the type of stocks in its portfolio.
Axis Nifty 500 Momentum 50 Index Fund
Axis Mutual Fund is launching the Nifty 500 Momentum 50 Index Fund on January 24, 2025, with subscriptions open until February 7, 2025.
Fund Details
Fund House: Axis Mutual Fund
Issue Open Date: January 24, 2025
Issue Closing Date: February 7, 2025
Category: Flexi Cap
Minimum Investment: Rs 100
Lock-in Period: None
Exit Load: 0.25% if redeemed within 15 days
Benchmark: Nifty 500 Momentum 50 TRI
Fund Managers: Karthik Kumar, Sachin Relekar
About the Fund: The Axis Nifty 500 Momentum 50 Fund is a passively managed index fund that invests in the top 50 stocks selected from the Nifty 500 Index based on their performance over the past 6 and 12 months.
The fund aims to generate returns by focusing on stocks that show strong performance trends.
Who Should Invest? This fund is suitable for investors looking for a diversified equity portfolio with a focus on momentum-driven stocks.
It is ideal for those with a moderate to high risk appetite and a long-term investment plan.
Risks: Like all equity investments, this fund carries market risks. Momentum investing can lead to higher portfolio turnover, which may increase transaction costs.
Historically, momentum strategies have performed well in bullish markets but may underperform during bearish phases.
LIC MF Multi Asset Allocation Fund
LIC Mutual Fund is launching the Multi Asset Allocation Fund on January 24, 2025, which will be open for subscriptions until February 7, 2025.
Fund Details
Fund House: LIC Mutual Fund
Issue Open Date: January 24, 2025
Issue Closing Date: February 7, 2025
Category: Hybrid Multi Asset Allocation
Minimum Investment: Rs 5,000
Lock-in Period: None
Exit Load: 1% if redeemed within 3 months
Benchmark: Nifty 500 TRI (65%), Nifty Composite Debt Index (25%), Domestic Price of Gold (10%)
Fund Managers: Nikhil Rungta, Prateek Harish Shroff
About the Fund: The LIC Multi Asset Allocation Fund is a hybrid fund that invests in multiple asset classes, including equity, debt, gold, and real estate. This diversified approach helps to balance risk and return, especially during market fluctuations.
Who Should Invest? This fund is ideal for investors looking for stable returns during market volatility. However, since the risk level is high or very high, investors should carefully assess their risk tolerance before investing.
