In 2021, the mutual fund industry has seen the launch of several new funds, each with its unique investment strategy and focus. In this blog, we will take a look at some of the newly launched mutual funds and their investment objectives.
Axis Global Equity Alpha Fund
– Direct Plan Axis Global Equity Alpha Fund is an open-ended equity fund that invests in international markets to provide long-term capital appreciation. The fund seeks to identify growth opportunities in markets outside India and invest in companies that have the potential to become leaders in their respective industries.
UTI Nifty 200 Momentum 30 Index Fund –
Direct Plan UTI Nifty 200 Momentum 30 Index Fund is an open-ended equity fund that tracks the Nifty 200 Momentum 30 Index. The fund aims to invest in companies that have a high momentum and positive price trends in the Nifty 200 Index.
Parag Parikh Conservative Hybrid Fund –
Direct Plan Parag Parikh Conservative Hybrid Fund is an open-ended hybrid fund that invests in a mix of equity, debt, and money market instruments to generate stable returns. The fund has a conservative investment approach and aims to provide a balance of safety and returns to its investors.
ICICI Prudential Smallcap Fund
– Direct Plan ICICI Prudential Smallcap Fund is an open-ended equity fund that invests in small-cap companies in India. The fund aims to identify companies with high growth potential and invest in them to generate long-term capital appreciation.
HDFC Balanced Advantage Fund
– Direct Plan HDFC Balanced Advantage Fund is an open-ended hybrid fund that invests in a mix of equity and debt instruments based on market valuations. The fund aims to provide a balance of safety and returns to its investors by dynamically managing its asset allocation.
Nippon India Multi Asset Fund –
Direct Plan Nippon India Multi Asset Fund is an open-ended hybrid fund that invests in a mix of equity, debt, and gold to provide diversification and generate long-term returns. The fund aims to manage risk by investing across different asset classes and investing in companies that have the potential to grow in the long term.
Certainly, let’s dive deeper into the newly launched mutual funds in 2021 and their investment objectives:
Axis Global Equity Alpha Fund –
Direct Plan:
The Axis Global Equity Alpha Fund is a unique mutual fund that invests in companies outside of India with the potential for high growth and long-term capital appreciation. The fund seeks to capitalize on opportunities in international markets that are not available in India, thereby offering diversification benefits to investors. The fund managers aim to select companies that are leaders in their respective industries and have sustainable competitive advantages, a robust business model, and excellent management. The fund is suitable for investors looking to diversify their portfolio and invest in companies with strong growth potential.
UTI Nifty 200 Momentum 30 Index Fund –
Direct Plan: The UTI Nifty 200 Momentum 30 Index Fund is an open-ended equity fund that tracks the Nifty 200 Momentum 30 Index. The fund invests in companies that have shown high momentum and positive price trends in the Nifty 200 Index, thereby potentially providing higher returns to investors. The fund managers aim to identify companies with strong fundamentals, high earnings growth potential, and good corporate governance. The fund is suitable for investors with a high-risk appetite who want to invest in a diversified portfolio of stocks with high momentum.
Parag Parikh Conservative Hybrid Fund –
Direct Plan: The Parag Parikh Conservative Hybrid Fund is an open-ended hybrid fund that invests in a mix of equity, debt, and money market instruments. The fund has a conservative investment approach and aims to provide stable returns to investors while managing the risk of downside volatility. The fund managers aim to identify high-quality companies with a sustainable competitive advantage and strong earnings potential. The fund is suitable for investors looking for a balanced portfolio that offers diversification and stability.
ICICI Prudential Smallcap Fund –
Direct Plan: The ICICI Prudential Smallcap Fund is an open-ended equity fund that invests in small-cap companies in India. The fund aims to identify companies with high growth potential and invest in them to generate long-term capital appreciation. The fund managers focus on companies that have a strong business model, good management, and a sustainable competitive advantage. The fund is suitable for investors with a high-risk appetite and a long-term investment horizon who want to invest in small-cap companies that have the potential for high growth.
HDFC Balanced Advantage Fund –
Direct Plan: The HDFC Balanced Advantage Fund is an open-ended hybrid fund that invests in a mix of equity and debt instruments based on market valuations. The fund aims to provide a balance of safety and returns to investors by dynamically managing its asset allocation. The fund managers aim to identify opportunities in the market and adjust the portfolio allocation between equity and debt accordingly. The fund is suitable for investors who want to invest in a balanced portfolio that offers diversification and flexibility.
Nippon India Multi Asset Fund –
Direct Plan: The Nippon India Multi Asset Fund is an open-ended hybrid fund that invests in a mix of equity, debt, and gold. The fund aims to provide diversification and generate long-term returns by investing across different asset classes. The fund managers aim to identify companies that have the potential to grow in the long term and manage risk by investing in different asset classes. The fund is suitable for investors who want to invest in a diversified portfolio that offers exposure to different asset classes.
Conclusion
The newly launched mutual funds in 2021 offer a wide range of investment options and cater to different investment objectives and risk appetites. Investors should carefully evaluate each fund’s investment strategy and performance history before investing and seek the advice of a financial advisor to determine the suitability of any investment for their specific needs. Investing in mutual funds carries risks, and investors should be prepared.
Frequently Asked Questions (FAQs)
Q.What are mutual funds?
A mutual fund is a type of investment vehicle that pools money from multiple investors to invest in a diversified portfolio of securities, such as stocks, bonds, and other financial instruments.
Q.How do mutual funds work?
When you invest in a mutual fund, your money is pooled with other investors, and a professional fund manager invests the money in a diversified portfolio of securities. The value of your investment in the mutual fund is based on the performance of the underlying securities.
Q.What are the different types of mutual funds?
There are several types of mutual funds, including equity funds, debt funds, balanced funds, index funds, sector funds, and international funds.
Q.How do I invest in a mutual fund?
You can invest in a mutual fund by opening an account with a mutual fund company or through a broker. You will need to complete a KYC (Know Your Customer) process and provide relevant documents, such as PAN card, Aadhaar card, bank account details, and a photograph.
Q.What are the benefits of investing in mutual funds?
The benefits of investing in mutual funds include diversification, professional management, liquidity, low minimum investment requirements, and transparency.
Q.What are the risks associated with investing in mutual funds?
The risks associated with investing in mutual funds include market risk, credit risk, interest rate risk, inflation risk, and liquidity risk.
Q.How are mutual fund returns taxed?
Mutual fund returns are taxed based on the holding period and the type of fund. Short-term capital gains (STCG) are taxed at the individual’s tax slab rate, whereas long-term capital gains (LTCG) are taxed at 10% without indexation or 20% with indexation, whichever is lower.
Q.How do I choose a mutual fund?
When choosing a mutual fund, you should consider your investment objectives, risk tolerance, investment horizon, and the fund’s historical performance, expense ratio, and portfolio holdings. It is also recommended to seek the advice of a financial advisor before investing.
Q.Can I redeem my mutual fund investment anytime?
Yes, you can redeem your mutual fund investment anytime, subject to the exit load and lock-in period, if any. Mutual funds typically have different exit loads based on the holding period.
Q.What is an expense ratio?
The expense ratio is the annual fee charged by the mutual fund company to manage the fund’s assets. It includes the fund manager’s fees, administrative expenses, and other expenses related to managing the fund. A lower expense ratio means higher returns for investors.
