NFOs in June 2025: DSP, Nippon, and SAMCO launch funds

– Nippon India, DSP, and SAMCO introduce new fund offers – Funds aim for tax-efficient returns and exposure to resilient sectors – Investors targeted include those seeking alternatives to traditional investments

Baroda BNP Paribas Large & Mid Cap Fund has allocated a significant portion of its portfolio to sectors such as Financial, Services, Technology, Energy, and Healthcare.

Nippon India Mutual Fund, DSP Mutual Fund, and SAMCO Mutual Fund are set to launch new fund offerings this June, aiming to attract investors seeking diversified, tax-efficient investment options. The new funds present a blend of equity and fixed income strategies, as well as sector-specific index funds, tapping into resilient market segments such as IT and healthcare. The offerings cater to investors wanting alternatives to fixed deposits and short-term debt funds by leveraging market volatility and active management techniques.

Nippon India Mutual Fund’s latest offering, the Income Plus – Arbitrage and Active FoF, will be open for investors from June 3 to June 10, 2025. This hybrid fund combines arbitrage and active debt management, intending to deliver stable, tax-efficient returns. The fund seeks to benefit from equity markets’ arbitrage opportunities while maintaining exposure to fixed income through active debt strategies. This design aims to attract those in higher tax brackets due to its alignment with equity taxation and potential for stable returns.

The Income Plus – Arbitrage and Active FoF involves a multi-asset allocation strategy by investing in Nippon India Arbitrage Fund and Nippon India Strategic Debt Fund. Managed by Kinjal Desai and Sonal Jain, the fund will target a 65–90% allocation in arbitrage and 10–35% in active debt instruments. This structure aims to provide low-risk returns, potentially appealing to investors in higher tax brackets due to its alignment with equity taxation.

SAMCO Mutual Fund is introducing its Large & Mid Cap Fund, an open-ended equity scheme focusing on large-cap and mid-cap stocks with a momentum-based strategy. The New Fund Offer (NFO) will open on June 5 and close on June 19, 2025. This fund utilises SAMCO’s proprietary C.A.R.E. Momentum Strategy, which assesses stocks based on momentum criteria to capture sustained market strength. It will be managed by Nirali Bhansali, Umeshkumar Mehta, and Dhawal G. Dhanani. The strategy aims to identify stocks showing robust performance, making it a compelling choice for investors looking to capitalize on market trends.

The SAMCO Large & Mid Cap Fund will invest at least 35% of its assets in both large-cap and mid-cap companies, following SEBI guidelines. The fund’s benchmark is the Nifty LargeMidcap 250 Total Returns Index. It may employ tactical hedging and derivatives to manage volatility and is thus positioned as a strategic investment for those looking to capitalise on market movements. This approach offers a balanced exposure to both large and mid-cap stocks, ensuring diversification and potential growth.

DSP Mutual Fund has launched two index funds targeting the IT and healthcare sectors, known for their resilience during market downturns. The DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund are designed to track their respective indices. These funds provide exposure to sectors that have historically outperformed during financial crises, such as the 2008 global financial crisis and the 2020 COVID-19 crash. The focus on these sectors offers a defensive strategy for investors seeking stability amidst market fluctuations.

The DSP Nifty IT Index Fund invests in the top 10 IT companies by free float market capitalisation, while the DSP Nifty Healthcare Index Fund focuses on the top 20 healthcare companies. These sectors, which derive a significant portion of their revenue from global markets, are poised for potential recovery and growth, with the healthcare sector considered underrepresented in India’s market capitalisation. The NFO period is open until June 16, 2025. This global revenue focus positions these funds as attractive options for investors looking for international exposure.

Investors interested in these offerings can consider them as viable alternatives to traditional fixed income products, particularly given the current market volatility. With a focus on tax efficiency and strategic asset allocation, these funds aim to provide stable returns while offering exposure to resilient sectors. Each fund is tailored to meet specific investment goals, from momentum-based equity strategies to hybrid models combining arbitrage and active debt management. The diverse approaches offer multiple pathways to achieve financial objectives, catering to varying risk appetites and market perspectives.

As these new offerings hit the market, potential investors are encouraged to assess their investment goals and risk tolerance when considering these funds. The varied approaches and sector focus provide multiple avenues for achieving diversified portfolios, with each fund offering distinct strategies to navigate fluctuating market conditions.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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