Active Stocks
Mon Apr 22 2024 15:57:16
  1. Tata Steel share price
  2. 161.85 -0.15%
  1. HDFC Bank share price
  2. 1,512.30 -1.24%
  1. State Bank Of India share price
  2. 765.85 2.00%
  1. ICICI Bank share price
  2. 1,087.00 1.93%
  1. Wipro share price
  2. 461.95 2.01%
Business News/ Mutual Funds / NFO Alert: Canara Robeco Mutual Fund launches Canara Robeco Manufacturing Fund; all you need to know
BackBack

NFO Alert: Canara Robeco Mutual Fund launches Canara Robeco Manufacturing Fund; all you need to know

Canara Robeco Mutual Fund announced the launch of the Canara Robeco Manufacturing Fund. The scheme opened for public subscription on February 16, 2024, and will close on March 01, 2024.

Canara Robeco Mutual Fund launches Canara Robeco Manufacturing Fund as a part of its new fund offers.Premium
Canara Robeco Mutual Fund launches Canara Robeco Manufacturing Fund as a part of its new fund offers.

Canara Robeco Mutual Fund announced the launch of the Canara Robeco Manufacturing Fund. The scheme opened for public subscription on February 16, 2024, and will close on March 01, 2024. The scheme re-opens for continuous sale and repurchase on March 18, 2024.

What kind of mutual fund scheme is this?

This is an open-ended sectoral/thematic equity scheme following a manufacturing theme. This product is suitable for investors seeking

  • Long-term capital appreciation
  • Investments in equity and equity-related instruments of companies engaged in the manufacturing theme.

What is the main objective of investing in this fund?

The scheme aims to generate long-term capital appreciation by investing predominantly in equities and equity-related instruments of companies engaged in the manufacturing theme. However, there can be no assurance that the investment objective of the scheme will be realized.

Also Read: NFO Alert: Zerodha Fund House launches Zerodha Gold ETF

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Maximum

High/Medium/Low

Equity and equity-related Instruments of companies engaged in the manufacturing theme

80%

100%

Very High

Equity and equity-related Instruments of companies other than engaged in the manufacturing theme

0%

20%

Very High

Debt & money market instruments

0%

20%

Low to Moderate

Units issued by REITs & InvITs

0%

10%

Very High

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such manufacturing funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

Mutual Fund House

Name of the Fund

Navi Mutual Fund

Navi Nifty India Manufacturing Index Fund

Kotak Mahindra Mutual Fund 

Kotak Manufacture in India Fund

Bank of India Mutual Fund

Bank of India Manufacturing & Infrastructure Fund

ICICI Prudential Mutual Fund

ICICI Prudential Manufacturing Fund

Source: AMFI (As of February 16, 2024)

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked against the S&P BSE India Manufacturing TRI. As approved by the Board of Directors/Trustees the scheme has currently selected the above-mentioned benchmark based on the investment pattern/objective of the scheme and the composition of the Index. The investment manager may revise the same to a more appropriate benchmark index, if any, as and when formulated by competent agencies. AMC may give its comments/perception on the comparison of returns and benchmarks if desired.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" would be calculated as under

- 1% - if redeemed/switched out within 365 days from the date of allotment.

- Nil - if redeemed/switched out after 365 days from the date of allotment.

Who will manage this scheme?

Pranav Gokhale and Shridatta Bhandwaldar are the fund managers for the scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Mutual Fund news and updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 17 Feb 2024, 11:32 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App