MUMBAI: Angel One Asset Management Company Ltd, a wholly owned subsidiary of Angel One Limited, a leading FinTech player announces the launch of its latest offering — the Angel One Nifty 1D Rate Liquid ETF – Growth, an open-ended exchange-traded fund replicating the Nifty 1D Rate Index. The New Fund Offer (NFO) will open for subscription from 20th March 2025 to 24th March 2025.

The ETF is designed as a highly liquid, risk-averse, and efficient solution for investors looking to park their idle funds while earning daily compounded returns. It invests in Tri-Party Repos (TREPS) on Government Securities (G-Secs) or Treasury Bills (T-Bills) with overnight maturity, thereby eliminating Mark-to-Market (MTM) risk and ensuring relatively low credit risk. With government-backed securities as underlying instruments, the scheme offers a high degree of safety while providing current income and liquidity.

The ETF’s Growth Option ensures that daily earnings are reinvested back into the scheme. The accrued earnings are reflected in the Net Asset Value (NAV), making it a seamless investment avenue that avoids the complexities of tracking fractional units.

Speaking on the launch, Hemen Bhatia, Executive Director & CEO, of Angel One Asset Management Company Limited, said, “Angel One Nifty 1D Rate Liquid ETF – Growth is designed to provide investors with a smart and efficient way to optimize returns on their idle funds. This product not only ensures high safety and liquidity but also enhances utility by enabling margin usage for trading. Its cost-effective structure makes it an ideal short-term investment tool for all types of investors.”

NFO Features

The NFO comes with several investor-friendly features. There is no entry or exit load, and the minimum application amount is ₹1,000, with investments allowed in multiples of Re. 1 thereafter. Units of the ETF will be listed on the National Stock Exchange (NSE) within five working days from the date of allotment, providing easy liquidity and the convenience of trading like any other stock. The fund will be managed by fund managers –  Mehul Dama and Kewal Shah.

As the earnings are accrued in the scheme, the ETF also offers tax efficiency, with income tax levied only at the time of sale of units. Furthermore, there are no Securities Transaction Tax (STT) charges applicable on the purchase or sale of ETF units, adding to its cost-effectiveness.

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PUNE: Bajaj Allianz Life Insurance, one of India’s leading private life insurers, today announced the launch of its new index-based fund – Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund, which will be available along with its ULIP products. Along with a life cover, this new fund offers ULIP customers a unique opportunity to capitalize on the growth potential of multi-cap stocks with momentum and quality factors, diversify their portfolios, and enjoy the benefits of an index-based investment approach. The NFO period for this fund ends on 14th February 2025.

The Nifty 500 Multicap Momentum Quality 50 Index focuses on stocks selected based on a combination of momentum and quality factors from the Nifty 500 index. The Momentum score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility. The Quality score for each company is determined based on return on equity (ROE), financial leverage (Debt/Equity Ratio), and earnings (EPS) growth variability analyzed during the previous 5 years.

Speaking on the launch of the new fund, Srinivas Rao Ravuri, Chief Investment Officer, Bajaj Allianz Life Insurance, said, “As one of the life goal enablers for India, we are committed to providing customers with means to achieve their long-term financial goals. The Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund allows ULIP customers to tap into India’s growth story through a diversified portfolio of high momentum. With a multi-cap approach and historical dynamic allocation among large Cap, Mid Cap & Small Cap, the fund identifies opportunities across market segments. Designed for investors with a higher risk appetite, it offers a path to long-term capital appreciation while navigating market fluctuations. These features make it a compelling choice for customers looking to review their fund allocation and move closer to their long-term financial goals.”

The fund aims to replicate the benchmark index’s performance (Nifty 500 Multicap Momentum Quality 50 Index), subject to tracking error. The Index will be rebalanced and reconstituted semi-annually in June and December.

Bajaj Allianz Life ULIP products with underlying Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund enable policyholders to achieve their life goals, powered by the opportunity for wealth creation with a dynamic allocation strategy. For more information on the Bajaj Allianz Life Nifty 500 Multicap Momentum Quality 50 Index Fund, please visit our website: https://www.bajajallianzlife.com/

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• The fund will invest in top-performing stocks that are part of the Nifty Alpha 50 Index
• In addition to the market-linked returns, consumers benefit from life cover and health & wellness benefits.

MUMBAI: Tata AIA Life Insurance Co. Ltd. (Tata AIA), one of India’s leading life insurers, has introduced Tata AIA NIFTY Alpha 50 Index Fund through its unit-linked insurance products, which is an open-ended New Fund Offering (NFO) with an alpha investing strategy to benefit from potential growth while securing their loved ones with the protection of a life insurance cover. The NFO will remain open until September 30th, 2024, with units offered at an NAV of Rs. 10 per unit during the NFO period.

The fund will focus on high-performing stocks i.e. the top 50 performing stocks that constitute the Nifty Alpha 50 index.

Why consumers should invest in the NIFTY Alpha Index Fund:

• It is a multi-cap market-linked investment fund, enabling policyholders to take exposure to high-performing stocks that are part of different market cap segments.
• It will replicate the performance of stocks listed on the NSE and generate high alpha. This will allow policyholders the opportunity to earn higher returns given the focus on benchmark-beating stocks.
• The fund will invest 80%-100% in Equity and Equity-related instruments, and 0%-20% in Cash and Money Market Securities. This will ensure a reasonable balance between returns and risk for the policyholders.

Commenting on the launch, Harshad Patil, Executive Vice President, and Chief Investment Officer (CIO) of Tata AIA said, “With India’s economy expanding multifold over the next few decades, the Indian equity market presents significant wealth creation opportunities. As a result, businesses will be able to grow their revenues, multiply their earnings, and provide policyholders with sustained returns. With Tata AIA NIFTY Alpha 50 Index Fund, our policyholders can capture market trends effectively by focusing on high-performing stocks across market caps. We can thus provide consumers with long-term returns, apart from life cover and health benefits offered by our investment-linked solutions. With Tata AIA Nifty Alpha 50 Index fund, our consumers can look forward to an exciting investment opportunity and a fikar-free life.“

Tata AIA policyholders can invest in the NIFTY Alpha 50 Index Fund through the company’s innovative Unit Linked Insurance Plans available under its popular Tata AIA Param Rakshak (PR) ⁺⁺ series and Tata AIA Pro-Fit plan⁺⁺⁺.  These solutions offer long-term growth potential of equity investments while securing consumers and their families with much-needed life and health insurance coverage.

Tata AIA has built a strong track record with its funds outperforming the respective benchmarks over multiple periods. According to Morningstar^, a global rating platform, Tata AIA Life has 95.55% of its Assets Under Management (AUM) rated as 4 or 5 stars as of July 2024. This indicates the quality of the investment process which has helped deliver fund performance across a wide range of funds. For instance, the Multi Cap Fund has given CAGR return of 31.23% over the past five years versus a benchmark return of 20.10% and 23.24% since inception versus a benchmark return of 14.79% as of 31st July 2024.

Benchmark Beating Performance of Tata AIA Funds:

*Data as of July 31, 2024. Past performance is not indicative of future performance.                                                       

Fund Benchmark: Multi Cap Fund, India Consumption Fund, Top 200 Fund: S&P BSE 200.                                                

**Inception Dates: Top 200 Fund: 12 Jan 2009, Multi Cap Fund: 05 Oct 2015, India Consumption Fund: 05 Oct 2015.

^ © 2024 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from data published on various dates and procured from various sources and (5) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates, or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.       

++ Param Rakshak Series which comprises of Tata AIA Life Insurance Smart Sampoorna Raksha – A Non-participating, Unit Linked, Individual Life Insurance Savings Plan (UIN:110L156V04) and Tata AIA Vitality Protect Plus – A Non-linked, Non-participating, Individual Health Rider (UIN: 110A048V03) OR Tata AIA Smart Sampoorna Raksha Pro, A Non-participating, Unit Linked Individual Life Insurance Savings Plan (UIN: 110L172V02) and Tata AIA Vitality Protect Plus, A Non-linked, Non-participating, Individual Health Rider (UIN: 110A048V03)

+++ Tata AIA Pro-Fit plan which comprises Tata AIA Smart Health, A Non-Participating, Unit-linked Individual Health Insurance Plan (UIN: 110L168V03), Tata AIA Sampoorna Health, A Non-Linked, Non- Participating Individual Health rider (UIN: 110A167V02) & Tata AIA OPD Care, A Linked, Non-Participating Individual Health rider (UIN: 110A166V02).

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MUMBAI: Invesco Mutual Fund today announced the launch of its new fund Invesco India Technology Fund, (an open-ended equity scheme investing in technology and technology-related sectors).

Invesco India Technology Fund seeks to generate capital appreciation by investing 80% – 100% in equity & equity related instruments of companies in technology and technology-related sectors, companies focused on driving transformative innovations across technology, automation, robotics, artificial intelligence, cloud computing, and other technology companies including those benefiting from increased digital adoption. This fund will adopt both top-down and bottom-up approaches and will invest across market capitalization balancing large-cap stability with midcap growth and small-cap potential. The fund will target investments in Indian Technology Companies alongside global technology leaders and innovators*. The fund will be benchmarked to Nifty IT TRI and will be managed by the fund managers, Hiten Jain and Aditya Khemani.

Speaking at the launch, Taher Badshah, Chief Investment Officer, of Invesco Mutual Fund said, “After a phase of subdued growth, the global IT services sector appears ready for recovery as the global economic environment stabilizes and as conditions build for a potential reversal of the hitherto rising global interest rate cycle. Not only has the Indian IT services sector gained share during this period in helping global companies manage costs, but it is also well positioned to accelerate growth going forward as adoption of new technologies revive global discretionary technology spends.”

Hiten Jain, Fund Manager, Invesco Mutual Fund further said, “Today’s world is driven by technology, and businesses are embracing newer technologies, creating new growth opportunities for IT companies. The sector is gaining strength, supported by digitalization, government initiatives, and other factors. Moreover, valuations are reasonable, and we anticipate a cyclical recovery in earnings driven by improving business sentiment.”

The minimum investment amount during the NFO is Rs. 1,000/- and in multiples of Re. 1/- thereafter. For SIP investments, the minimum application amount is Rs. 500/- and in multiples of Re. 1/- thereafter. The fund will charge an exit load of 0.50% for units redeemed/switched out on or before 3 months from the date of allotment. No exit load will be charged if units are redeemed/switched out after 3 months.

The New Fund Offer (NFO) is now open for subscription from today (3 September 2024) and will close on 17 September 2024.

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The Index’s methodology measures excess return generated by the portfolio relative to its benchmark index Nifty200 after adjusting for risk and volatility. Based on the alpha factor, the fund identifies and includes stocks that generate returns above the broad market return and risk-free return, giving more importance to stocks that generate high excess returns per unit of risk. As a result, Nifty200 Alpha 30 Index has been able to outperform market cap-weighted indices like Nifty200 during market upturns. However, it should be noted that Nifty200 Alpha 30 Index may underperform vis-à-vis Nifty200 during market downturns.

At the launch of the index fund, Anand Vardarajan, Chief Business Officer, Tata Asset Management, said, “This strategy aims to capture extra returns over what Nifty200 index could provide by selecting the top 30 stocks which can deliver alpha.  This is yet another differentiated offering from our side to build our product portfolio. We believe these could add value to clients when it comes to constructing and diversifying their investment portfolios. ”

While sector exposure will change to reflect the outperforming sectors, the index will maintain a stock cap of 5% which makes the index diversified across sectors and stocks.

Index Methodology:

The Nifty200 Alpha 30 Index methodology measures excess investment return relative to the Benchmark index Nifty200 using 1-year trailing price. The top 30 stocks with the highest Jensen’s Alpha are chosen, allocating more weight to stocks that generate high Alpha per unit of risk, i.e., volatility. Our Tata Nifty200 Alpha 30 Index Fund replicates this index.

Index is re-balanced on a quarterly basis using data ending last trading day of February, May, August, and November. The stocks should have a minimum listing history of 1 year as on the cut-off date and should be available for trading in derivative segment (F&O) as on the effective date.

Enclosed below are the details about the Tata Nifty200 Alpha 30 Index Fund:

Enclosed below are the details about the Tata Nifty200 Alpha 30 Index Fund:

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• The offering provides investors with an opportunity to gain exposure to the metal sector which is diverse and dynamic
• The ETF will invest in a range of companies involved in both ferrous and non-ferrous metals, reflecting the behavior and performance of the companies forming a part of the metal sector
• The NFO period is from August 1, 2024, to August 12, 2024

MUMBAI: ICICI Prudential Mutual Fund has announced the ICICI Prudential Nifty Metal ETF launch. The offering aims to provide returns before expenses that correspond to the returns provided by the Nifty Metal Index, subject to tracking errors. The Nifty Metal Index includes companies from the metal sector, including ferrous and non-ferrous metals.

The Nifty Metal Index is designed to reflect the behavior and performance of the Metals sector (including mining). The Nifty Metal Index comprises a maximum of 15 stocks that are listed on the National Stock Exchange. These companies are selected from the Nifty 500 based on their market value, ensuring a broad representation of the sector. The index composition ensures that no single company has more than 33% weight, and the top three companies cumulatively do not exceed 62% of the index.

Speaking on the launch of the product, Chintan Haria, Principal – Investment Strategy at ICICI Prudential AMC, said, “ICICI Prudential Nifty Metal ETF is designed to provide investors with access to one of the critical sectors that form the backbone of industrial growth. The metal sector, encompassing crucial industries like steel, aluminum, and copper, is integral to infrastructure and economic development. With increasing demand and consumption, especially in a rapidly growing economy like India, this sector presents a compelling long-term investment opportunity. Our Metal ETF aims to allow investors to benefit from the uptick in metals due to expected higher global inflation amidst lower interest rates.“

Why invest in ICICI Prudential Nifty Metal ETF?

The Nifty Metal TRI has outperformed the Nifty 500 TRI five times in the last decade, demonstrating its potential for delivering good returns. Investing in the ICICI Prudential Nifty Metal ETF provides:

1. Exposure to a key sector essential for economic growth.
2. Access to well-established companies experiencing renewed global interest.
3. A relatively low valuation compared to broader market indices, coupled with increasing demand and consumption.
4. A convenient entry with a minimum investment of just one unit.

Performance of the Index: Calendar Year Returns (%)

Nifty Metal TRI has Outperformed the Nifty 500 TRI five times in the last 10 years.

Data as of June 28, 2024. Data Source: Nifty Indices https://www.niftyindices.com/indices/equity/sectoral-indices/nifty-metal, MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/ legal/standard-disclaimer.html. The performance of the index does not signify the returns of the scheme. Past performance may or may not be sustainable in the future.

Data as of July 23, 2024. Data Source: Nifty Indices https://www.niftyindices.com/indices/equity/sectoral-indices/nifty-metal. MFI Explorer. MFI Explorer is a tool provided by ICRA Online Ltd. MFI Explorer is a tool provided by ICRA Online Ltd. For their standard disclaimer please visit http://www.icraonline.com/legal/standard-disclaimer.html. CAGR stands for The compound annual growth rate (CAGR) is the rate of return (RoR) that would be required for an investment to grow from its beginning balance to its ending balance, assuming the profits were reinvested at the end of each period of the investment’s life span. Returns rebased to Rs. 100 as of 12th July 2013. The performance of the index does not signify the returns of the scheme. Past performance may or may not be sustained in the future.

Index Portfolio Snapshot:

Source: Nifty Metal Factsheet. As of June 28, 2024. https://www.niftyindices.com/Factsheet/ind_nifty_metal.pdf. The sector(s)/stock(s) mentioned in this document do not constitute any recommendation of the same and ICICI Prudential Mutual Fund may or may not have any future positions in the sector(s)/stock(s).

The Nifty Metal Index is updated twice a year to reflect the sector’s performance accurately and has outperformed broader market indices since inception, as shown in the above graph, demonstrating its potential for delivering good returns.

The minimum application amount during the NFO is Rs. 1000 (plus in multiple of Re. 1).

This ETF’s benchmark is the Nifty Metal TRI, and Mr. Nishit Patel and Ms. Priya Sridhar are the fund managers of the ETF.

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INDIA: GIFT Nifty, which stands as a new benchmark to the growth story of the Indian equity market, recorded a new milestone and has added yet another feather in its cap in terms of achieving an All-Time High Monthly Turnover of US $82.04 billion in April 2024. This remarkable feat surpasses its previous record of US $78.09 billion set in February 2024.

Trading turnover on NSE IX has been growing exponentially since the commencement of a full-scale operation of GIFT Nifty on July 3, 2023. Since the first day of full-scale operations, GIFT Nifty has witnessed a total cumulative volume of over $16.86 million contracts with a total cumulative turnover of US $694 billion till April 2024.

The NSE spokesperson remarks, “We are glad to witness the success of GIFT Nifty and express our sincere gratitude to all the participants for their overwhelming support and for making GIFT Nifty a successful contract.”

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MUMBAI: In a significant move to tap into the dynamic growth of the Indian banking sector, Axis Mutual Fund is excited to announce the New Fund Offer (NFO) of the ‘Axis Nifty Bank Index Fund’. This open-ended index fund aims to track the Nifty Bank TRI, providing investors with a mechanism to participate directly in the growth narrative of leading Indian banks.

“India’s economic rise is a compelling narrative driven by several factors. If addressed effectively, our growth story has the potential to propel the nation toward becoming a major global economic power. Against this backdrop, India’s banking sector continues to exhibit growth and resilience,” remarked B. Gopkumar, MD & CEO, Axis AMC. “Fuelled by robust regulatory frameworks and the rapid adoption of digital banking, the sector is well-positioned for sustained expansion. The Axis Nifty Bank Index Fund offers investors a strategic opportunity to tap into this growth opportunity. The sector benefits from a strong emphasis on innovation and adherence to the highest governance standards, thereby capitalizing on the transformative trends reshaping India’s banking landscape.”

Managed by Mr. Karthik Kumar and Mr. Ashish Naik, the fund aims to provide returns before expenses that correspond to the total returns of the Nifty Bank TRI, subject to tracking errors. However, there is no assurance that the investment objective of the scheme will be achieved.

The index comprises some of the largest and most liquid banking stocks in India, representing a crucial segment of the national economy.

“This fund is an interesting opportunity for investors to gain exposure to the banking sector, which is expected to play a pivotal role in India’s economic expansion,” explained Ashish Gupta, Chief Investment Officer at Axis AMC. “With increasing financial inclusion and a shift towards more sophisticated banking services, the sector can offer the potential for significant returns.”

The Axis Nifty Bank Index Fund

The Scheme would invest in stocks comprising the underlying index and shall track the benchmark index. The Scheme may also invest in debt and money market instruments, in compliance with Regulations to meet liquidity and expense requirements. The Scheme shall invest in stocks forming part of the underlying Index in the same ratio as per the index to the extent possible and to that extent follow a passive investment strategy, except to the extent of meeting liquidity and expense requirements. Essentially, the fund employs a passive investment strategy designed to mirror the performance & constituents of the Nifty Bank TRI. Further, the index undergoes rebalancing on a semi-annual basis to ensure it reflects the current landscape of the sector by including the companies that best represent its performance.

The Axis Nifty Bank Index Fund can be a potentially attractive option for investors seeking to capitalize on the sector’s growth by including a diversified mix of Large-Cap and Mid-Cap banking companies (PSUs as well as Private Banks). “The Axis Nifty Bank Index Fund offers a cost-effective and efficient way to gain exposure to the Indian banking sector and we invite investors to seize this opportunity,” concluded Mr. Gopkumar.

The NFO will open for subscriptions on May 3, 2024, and will close on May 17, 2024.

For detailed information on the investment strategy and to view the Scheme Information Document (SID)/Key Information Memorandum (KIM), please visit www.axismf.com.

Product Labelling and Riskometer: Axis Nifty Bank Index Fund (an open-ended index fund tracking the Nifty Bank TRI)

*Investors should consult their financial advisors if in doubt about whether the fund is suitable for them

(The product labeling assigned during the New Fund Offer is based on an internal assessment of the Scheme Characteristics or model portfolio and the same may vary post NFO when actual investments are made.)

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