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Two fund houses have knocked at SEBI’s door to launch equity funds. SBI Mutual Fund has sought the Securities and Exchange Board of India’s approval for its open-ended exchange traded scheme, SBI-ETF Nifty Private Bank. IDBI Mutual Fund has filed draft prospectus with SEBI for the new fund offer, IDBI Midcap Fund, an open-ended equity scheme.
For SBI Mutual, the investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by Nifty Private Bank Index (NPBI), subject to tracking error, said its offer document.
SBI Mutual Fund will allot 95-100 per cent in securities covered by the Nifty Private Bank and 0-5 per cent in money market instruments.
30 ETF schemesCurrently, around 30 ETF schemes are launched based on various Nifty indices, such as Nifty 50, Nifty 100, Nifty Bank, Nifty CPSE, Nifty India Consumption and Nifty Next 50.
IDBI Mutual Fund will allocate 65-100 per cent in equity and equity-related instruments of mid-cap companies for its Midcap Fund. The fund plans to invest 0-35 per cent in debt and money market instruments and it will track Nifty Free Float Midcap 100 as its benchmark index.
The objective of the scheme is to provide investors with the opportunities for long-term capital appreciation by investing in mid-cap themes, the fund house said. It comes out with two plans — regular and direct with growth and dividend options.
₹5,000, minimum levelFor both SBI and IDBI schemes, the minimum application amount is ₹5,000 and in multiples of ₹1 thereafter.
An exit load of 1 per cent will be applicable on redemption of units within 12 months from allotment for IDBI Midcap Fund. Meanwhile, DHFL Pramerica MF is seeking the market regulator’s nod for its fixed maturity plans — DHFL Pramerica Fixed Duration Fund — Series AA to AE.
The close-ended debt schemes, with tenure between one and 120 months, will invest the entire corpus in domestic debt instruments including government securities and securitised debt, and money market instruments.
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