Best Mutual Funds To Buy

Best  Mutual Funds To Buy
One of the Best Ways to Create Wealth In The long Term In The Equity Market Is Through Equity Mutual Funds. Historically, It Has Been Observed That Equity Mutual Funds Have Outperformed Inflation in long Term Despite Short Term Volatilities.

 Moreover, Indian Mutual 

Fund Industry is Mature and Well Regulated.

Investors can Invest in lump Sum and/or via SIPs in Mutual Funds. SIP is a Method in which a Particular Amount is Invested In Mutual Funds Regularly for a pre Defined Period. SIPs Allow Investors to Reap the Benefit of ‘Rupee Cost Averaging’..

1 Aditya Birla SL Top 100 Fund

It is a large-cap equity fund, which primarily invests in top 100 stocks by market capitalization.

The fund follows growth cum value investment style to create wealth in long term. 

As of November 2017, the fund had invested ~82% of its AUM in large-cap stocks and ~11% in mid-cap stocks.

Investors who want to primarily invest in large-cap stocks can invest in the fund to create wealth in the long term.


2 Tata Equity P/E Fund

It is a value conscious equity fund, which aims to invest 70-100% of its AUM in stocks whose 12 months rolling PE ratio is lower than 

12 month rolling PE ratio of BSE Sensex. 

The remaining AUM is allocated in other equity and debt instruments.

As of November 2017, the fund had invested ~61% of its AUM in large-cap stocks and ~31% in mid-cap stocks to generate higher 
returns.

Investors who are value conscious and want to invest in large-cap and mid-cap stocks can invest in the fund.

3  Franklin India Prima Fund

It predominantly invests in small-cap and mid-cap stocks which tend to exhibit higher growth than large-cap stocks.

It aims to identify and invest in companies which are at an early stage of the business life cycle as they have an enormous potential 
to grow.

As of November 2017, ~66% of AUM was invested in mid-cap stocks, and ~23% in large-cap stocks to generate high returns for 
investors.

Investors who want to primarily invest in mid-cap stocks can invest in this fund to create wealth in long term.

4 HDFC Mid-Cap Opportunities Fund

It is a mid-cap equity fund which has allocated, as of November 2017, ~61% of its AUM to mid-cap stocks, ~25% to large-cap stocks, and ~11% in small-cap stocks to generate high returns for investors.

It has well diversified portfolio with no more than ~10% exposure to any particular sector.

It has also managed its concentration risk, top 10 stocks account for only ~25% of the AUM.

Investors who want to primarily invest in mid-cap stocks with some exposure to small-cap stocks can invest in this fund to create 
wealth in long term.

5 DSP BlackRock Small and Mid Cap Fund

It invests in stocks beyond top 100 companies, based on market capitalization.

The fund manager invests in small-cap and mid-cap stocks with consistent earnings and significant growth potential.
It follows bottom-up approach to select the 

As of November 2017, ~54% of its AUM was invested mid-cap stocks, ~24% was invested in large-cap stocks, and ~17% in small-
cap stock to generate high returns for investors.

Investors who want to primarily invest in mid-cap and small-cap stocks can invest in this fund to create wealth in long term. 

BY
HARSHITA TIWARI
Intern FinTech
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New Fund Offer - NFO

New Fund Offer - NFO

What is a 'New Fund Offer - NFO'

Fund Offerings

Mutual Funds are The Most Common Type oF New Fund Offering. New Fund Offerings can be for Open-End or Closed-End Mutual Funds. 

New Exchange Traded Funds are also First Offered Through a New Fund Offering. Below are Details on How to Invest In a Few of the Market’s Common Types of New Fund Offerings.

Open-End Fund

In a New Fund Offer, an Open-End Fund will Announce New Shares for Purchase on a Specified launch Day. Open-End Funds do not Limit their Number of Shares. These Funds can be Bought and Sold from a Brokerage Firm on Their Initial launch Date and Thereafter. 

The Shares do not Trade on an Exchange and are Managed by the Fund Company and/or Fund Company Affiliates. Open-End Mutual Funds Report Net Asset Values Daily After The Market’s Close.

Fund Companies Can Launch New Fund Offers for New Strategies or Add Additional Shares Classes to existing strategies. One Example of a New Open-End Fund launch is VanEck’s Offering of Two New Share Classes in the VanEck Morningstar Wide Moat Strategy (Class I 
shares: MWMIX; Class Z shares: MWMZX).

Closed-End Fund

Closed-End New Fund Offers Are Often Some of The Most Highly Marketed New Fund Issuances since Closed-End Funds only Issue a Specified Number of Shares During Their New Fund Offer. Closed-End Funds Trade on an Exchange with Daily Price Quotes Throughout The Day. Investors can Buy Closed-End Funds on Their launch Date Through a Brokerage firm. (See also Closed-End vs. Open-End Funds.)

One example of a New closed-end Fund Offer is the Dreyfus Alcentra Global Credit Income 2024 Target Term Fund (DCF). The Fund raised $140 million from its New Fund Offer.

Exchange-Traded Fund

New Exchange-Traded Funds (ETFs) are also launched Through a New Fund Offer. On November 9, 2017, Vanguard launched the Vanguard Total Corporate Bond ETF (VTC). The New Fund Offer increased the firm’s U.S. fixed income Fund Offerings to 17 ETFs. The New 
ETF is an index Fund that Seeks to Replicate the Holdings and Performance of the Bloomberg Barclays U.S. Corporate Bond Index By Investing in the Vanguard Short-Term Corporate Bond ETF (VCSH), Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and Vanguard Long-Term Corporate Bond ETF (VCLT). It trades on the NASDAQ stock exchange with an expense ratio of 0.07%.

Launches and Alerts

Often, New Fund Offers are not widely publicized making them challenging to identify. Companies must register a New Fund Offering with the Securities and Exchange Commission (SEC) Offering one method of tracking. Investors seeking information on New Fund 
Offers prior to their launch date may also receive alerts from their brokerage firm. News outlets and News aggregators are also a good source for information on New Fund Offers. Sources such as the Closed-End Fund Center provide details on New Fund Offers. 
Companies will also issue press releases on New Fund Offers. For example, Vanguard issued a press release in August 2017 announcing the launch of the Vanguard Total Corporate Bond ETF in November 2017.

A New Fund Offer is similar to an initial public Offering. Both represent attempts to raise capital to further operations. New Fund Offers can be accompanied by aggressive marketing campaigns, created to entice investors to purchase units in the Fund. New Fund Offers often have potential for significant gains after beginning to trade publicly  A New Fund Offer (NFO) is the first subscription Offering for any New Fund Offered by an investment company. A New Fund Offer occurs 
when a Fund is launched, allowing the firm to raise capital for purchasing securities. Mutual Funds are one of the most common New Fund Offerings marketed by an investment company. The initial purchasing Offer for a New Fund varies by the Fund’s structuring

BY


HARSHITA TIWARI
Intern FinTech

#New
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#Offer
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#Fund
#Money
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#Investment
#Return

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