Five new fund offers (NFOs), launched in a rush during July to beat the load ban that came into effect from August 1, have together raised around Rs 900 crore.
The NFOs were BlackRock World Energy Fund, Franklin Templeton Build India Fund, Kotak Select Focus Fund, Religare Business Leader Fund and JP Morgan JF Greater China Equity offshore Fund. According to mutual fund and distribution industry sources, DSP BlackRock World Energy Fund raised Rs 350 crore, Franklin Templeton Build India Fund collected around Rs 225 crore, Kotak Select Focus Fund mopped up around Rs 175 crore, Religare Business Leader Fund collected Rs 70 crore and JP Morgan Greater China Equity Offshore Fund raised Rs 52 crore.
Kotak Select Focus Fund was to close on August 20, but now the fund house has extended the date of closure to August 23. An executive of a distribution house said Kotak Mutual Fund expects the collection to reach at least Rs 300 crore.
The fund offers had come on the back of fears that customers might defer investing in mutual funds till the August 1 entry load ban came into effect. However, those tracking the industry feel that funds hit the market with the conviction that investors would lap up good offers even if they were to pay the upfront entry fee of 2.25 per cent, mainly because of the buoyant equity market conditions.
Krishnamurthy Vijayan, executive chairman of JP Morgan AMC, said that had the investors decided to wait for the no-entry load regime to take off, DSP BlackRock might not have been able to raise Rs 350 crore.
Sapna Jhawar, research analyst, Sharekhan, said investors would not wait for the entry load ban to come into effect if a fund is good. “Given the buoyancy in equity markets, I think investors would not mind paying a 2.25 per cent load in order to participate in the uptrend. Even if you exclude the NFO collections in July, the total inflow increased by 13 per cent during the month,” she added.
Saurabh Nanavati, CEO of Religare Mutual Fund, said there were a number of NFOs vying for investors’ attention and “keeping this fact in mind, the collection has been decent”.
He said that the NFO received 13,000 applications from retail investors compared with 15,000 for DSP BalckRock World Energy Fund and 18,000 for Franklin Templeton Build India Fund.
The NFOs were BlackRock World Energy Fund, Franklin Templeton Build India Fund, Kotak Select Focus Fund, Religare Business Leader Fund and JP Morgan JF Greater China Equity offshore Fund. According to mutual fund and distribution industry sources, DSP BlackRock World Energy Fund raised Rs 350 crore, Franklin Templeton Build India Fund collected around Rs 225 crore, Kotak Select Focus Fund mopped up around Rs 175 crore, Religare Business Leader Fund collected Rs 70 crore and JP Morgan Greater China Equity Offshore Fund raised Rs 52 crore.
Kotak Select Focus Fund was to close on August 20, but now the fund house has extended the date of closure to August 23. An executive of a distribution house said Kotak Mutual Fund expects the collection to reach at least Rs 300 crore.
The fund offers had come on the back of fears that customers might defer investing in mutual funds till the August 1 entry load ban came into effect. However, those tracking the industry feel that funds hit the market with the conviction that investors would lap up good offers even if they were to pay the upfront entry fee of 2.25 per cent, mainly because of the buoyant equity market conditions.
Krishnamurthy Vijayan, executive chairman of JP Morgan AMC, said that had the investors decided to wait for the no-entry load regime to take off, DSP BlackRock might not have been able to raise Rs 350 crore.
Sapna Jhawar, research analyst, Sharekhan, said investors would not wait for the entry load ban to come into effect if a fund is good. “Given the buoyancy in equity markets, I think investors would not mind paying a 2.25 per cent load in order to participate in the uptrend. Even if you exclude the NFO collections in July, the total inflow increased by 13 per cent during the month,” she added.
Saurabh Nanavati, CEO of Religare Mutual Fund, said there were a number of NFOs vying for investors’ attention and “keeping this fact in mind, the collection has been decent”.
He said that the NFO received 13,000 applications from retail investors compared with 15,000 for DSP BalckRock World Energy Fund and 18,000 for Franklin Templeton Build India Fund.
Source: http://www.mydigitalfc.com/mutual-funds/funds-launched-load-ban-raise-rs-900-cr-265
