NFO Alert: Kotak Mutual Fund to Launch Kotak BSE Sensex Index Fund

The Kotak BSE Sensex Index Fund is an open-ended scheme that replicates or tracks the performance of the BSE Sensex Index. It falls under the category of index funds and is benchmarked against the BSE Sensex Total Return Index (TRI). 

The fund’s goal is to generate returns matching the index’s performance before accounting for expenses, though there is no guarantee this objective will be achieved.

Key Details

    • NFO Period: 27th January 2025 to 10th February 2025
    • Minimum Investment: ₹100, with any amount thereafter for additional investments
    • Fund Managers: Devender Singhal, Satish Dondapati, and Abhishek Bisen
    • Type of Scheme: Open-ended, index-based
    • Benchmark: BSE Sensex Total Return Index (TRI)
  • Risk-o-Meter: The Risk of the Scheme and Benchmark is very high

Investment Objective

The scheme is structured to provide returns corresponding to the total returns of the securities in the BSE Sensex Index. These returns are subject to tracking errors, which can occur due to costs, timing differences, and other factors.

Historical Context and Returns

Over the past 24 years, the BSE Sensex Index has delivered an average annual return of 16%. An investment of ₹1 lakh in the index in 2000 would have grown to ₹21 lakh by 2024. The index has shown positive returns in 19 out of the last 24 calendar years.

Why This Fund?

The fund provides exposure to the 30 largest companies across various sectors in India, offering diversification. Additionally, it operates with lower expense ratios, making it a cost-effective choice for investors seeking to track the index’s performance.

Suitability

This fund may be appropriate for:

  • Investors new to equity mutual funds who prefer passive strategies.
  • Those looking for exposure to large-cap companies through the BSE Sensex Index.
  • Investors with long-term financial goals.

While the fund aims to mirror the performance of the BSE Sensex Index, investors should consider their financial situation and consult with advisors before investing. Past performance does not guarantee future results.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bandhan Mutual Fund Files Draft For Bandhan Fixed Maturity Plan – Series 212 (93 Days)

Bandhan Fixed Maturity Plan – Series 212 is a close-ended debt scheme with a tenure of 93 days. It focuses on generating income by investing in debt and money market instruments that mature within the scheme’s fixed duration. The scheme carries a relatively low interest rate risk and moderate credit risk.

The goal of the scheme is to provide regular income over the short term. However, there is no guarantee or assurance that this objective will be achieved.

Tenure and Structure

The scheme is close-ended, meaning subscriptions are only allowed during the New Fund Offer (NFO) period. After the NFO closes, units cannot be purchased or redeemed directly but will be listed on the Bombay Stock Exchange (BSE) for trading.

  • Minimum Investment: ₹5,000 during the NFO period.
  • New Fund Offer Price: ₹10 per unit.
  • Options Available: Regular and Direct Plans with Growth or Income Distribution (IDCW) options.

Benchmark and Risk Classification

The scheme’s performance will be benchmarked against the Nifty Ultra Short Duration Debt Index A-I. It is categorized under “B-I” in the Potential Risk Class Matrix, showing low interest rate risk and moderate credit risk.

Investment Allocation

The fund will invest between 0% and 100% in debt and money market instruments, with up to 40% allocated to securitized debt. Instruments like derivatives, foreign securities, and credit-enhanced debt are excluded from its portfolio.

Expense Ratio and Redemption

The scheme’s recurring annual expenses are capped at 1% of its daily net assets, with additional costs applicable for investments from specified cities (B30 cities).
Units cannot be redeemed before maturity. However, investors can trade the units on the stock exchange once listed.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Edelweiss Mutual Fund Files Draft For CRISIL-IBX AAA Bond NBFC-HFC – Jun 2027 Index Fund

The Edelweiss CRISIL-IBX AAA Bond NBFC-HFC – Jun 2027 Index Fund is an open-ended debt index fund. It invests primarily in AAA-rated bonds issued by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs), all maturing by June 2027. The fund comes with moderate interest rate risk and relatively low credit risk.

Investment Details

The fund replicates the performance of the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027. It does this by investing at least 95% of its assets in bonds that are part of the index. A small portion, up to 5%, is set aside for liquidity in instruments like T-bills and government securities.

  • Maturity Date: June 30, 2027
  • NAV Pricing: Units are priced at ₹10 during the NFO.
  • Exit Load: 0.10% for redemptions within 30 days; nil after that.
  • Minimum Investment: ₹100 and multiples of ₹1 thereafter.

Benchmark and Management

The fund uses the CRISIL-IBX AAA NBFC-HFC Index – Jun 2027 as its benchmark. Its performance closely follows the index, with tracking errors expected to stay below 2% per year. The fund is passively managed and follows a “buy and hold” strategy to align with the index maturity date.

Risks and Expenses

Key risks include interest rate fluctuations and market volatility. The fund’s expenses, capped at a 1% Total Expense Ratio (TER), cover fund management and other operational costs. An additional 0.05% may apply for specific costs, as allowed by SEBI regulations.

Liquidity and Redemption

Investors can purchase and redeem units on any business day. The redemption proceeds are dispatched within three working days. In case of delays, SEBI mandates an interest payment of 15% per annum from the fourth day onwards.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

ICICI Prudential BSE Liquid Rate ETF Gets a New Name

ICICI Prudential Mutual Fund has announced a name change for its “ICICI Prudential BSE Liquid Rate ETF.” Effective January 27, 2025, the fund will be renamed ICICI Prudential BSE Liquid Rate ETF – IDCW (Income Distribution cum Capital Withdrawal). The change shows the fund’s income distribution option, aligning it with regulatory naming conventions.

Fund Details and Strategy

The fund primarily invests in CBLOs (Collateralized Borrowing and Lending Obligations) and aims to deliver returns closely tracking the S&P BSE Liquid Rate Index, subject to tracking errors. 

As a liquid fund, it holds 100% cash and cash equivalents, making it a low-risk option for short-term parking of funds.

Taxation on Gains and Dividends

Investments made on or after April 1, 2023, are subject to slab-rate taxation. Gains made within a year are added to the investor’s income and taxed accordingly. Gains from investments before this date are taxed at 12.5% if sold after one year.

For dividends, the amount is added to the investor’s taxable income and taxed based on the applicable slab rate. Additionally, if dividend income exceeds ₹5,000 in a financial year, the fund house deducts a 10% TDS before distribution.

As of January 23, 2025, the fund’s NAV-IDCW Daily stood at ₹1,000.0000, showcasing a 0.02% gain, and its one-year return was 6.45%.

Risks and Considerations

While liquid funds generally involve minimal risk, they do not guarantee returns or capital safety. Although rare, instances of losses in liquid funds have occurred.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Franklin Templeton Mutual Fund Declares Income Distribution Under Few Schemes

Franklin Templeton Mutual Fund has announced income distribution under the IDCW (Income Distribution cum Capital Withdrawal) option for select schemes. The record date for this distribution has been set as January 24, 2025. Investors holding units of these schemes on the record date will be eligible for the payout.

Summary of Distributions

Here is a breakdown of the payouts under each scheme:

Scheme Direct-IDCW (₹/unit) Regular-IDCW (₹/unit)
Franklin India Bluechip Fund 5.00 4.25
Franklin India ELSS Tax Saver Fund 5.25 4.50
Franklin India Dynamic Asset Allocation FoF 1 0.85

Payout Details for Bluechip Fund

The Franklin India Bluechip Fund has declared income distribution across both regular and direct IDCW options. The Direct-IDCW option will distribute ₹5 per unit, while the regular IDCW option offers ₹4.25 per unit.

ELSS Tax Saver Fund Distribution

For the Franklin India ELSS Tax Saver Fund, the payout under the Direct-IDCW option is ₹5.25 per unit. The regular IDCW option for the same fund provides ₹4.50 per unit.

Dynamic Asset Allocation Fund Payouts

The Franklin India Dynamic Asset Allocation Fund of Funds (FoF) has announced income distribution as well. Investors in the Direct-IDCW option will receive ₹1 per unit, while those under the regular IDCW option will get ₹0.85 per unit.

Eligibility Based on Record Date

The record date, January 24, 2025, is applicable for all the schemes mentioned. Investors must ensure they hold units of the respective schemes on this date to qualify for the announced payouts.

This announcement provides clarity on income distribution for eligible investors in Franklin Templeton’s mutual fund schemes.

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Navi Mutual Fund Updates Minimum Investment Limits

Navi Mutual Fund has announced an increase in the minimum application amount for 13 of its schemes, effective February 4, 2025. The minimum investment limit has been raised from ₹10 to ₹100 per application. This change will apply to fresh purchases, additional investments, systematic transactions like SIPs and STPs, and switches.

Schemes Impacted by the Revision

The following schemes are affected by this change:

Temporary Restriction on Two Funds

The Navi US Total Stock Market Fund of Fund and Navi NASDAQ 100 Fund of Fund will not accept new inflows or subscriptions (including lump sum, SIPs, and STPs) as per AMFI guidelines issued in March 2024. This restriction will continue until further notice, even after the revision comes into effect.

Notice and Communication

The changes were communicated to unitholders through a notice-cum-addendum. The notice clarifies that this revision applies only to prospective investments from February 4, 2025. All other terms and conditions of the schemes remain the same. 

The updated information is included in the Scheme Information Documents (SIDs), Key Information Memoranda (KIMs), and Statement of Additional Information (SAI).

The Context for the Change

This is part of an ongoing adjustment by Navi Mutual Fund. In 2022, the fund house reduced the minimum application amount across its schemes to ₹10, excluding the ELSS fund. With this update, Navi Mutual Fund aims to revise and standardise investment requirements across its offerings.

Current Portfolio of Navi Mutual Fund

Navi Mutual Fund manages 16 schemes in total. With this revision, the investment limits have been updated for 13 of these schemes, while the remaining schemes remain unaffected.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Maruti Suzuki to Increase Car Prices from February 1, 2025

Maruti Suzuki India has confirmed a price hike across its entire vehicle lineup, effective February 1, 2025. This decision comes as the company faces rising input costs and operational expenses. In a regulatory filing, Maruti Suzuki stated that while efforts are being made to manage costs, some of the burden will inevitably be passed on to customers.

Maruti Suzuki India Ltd shares are currently trading at ₹12,024.90, down by ₹20.85 (0.17%) as of 11:01 AM on January 24, showing a 20.37% gain over the past year but a 3.72% decline in the last six months.

Hike Details

The price increase will vary across models, ranging from ₹1,500 to ₹32,500. The largest hike of ₹32,500 will apply to the Celerio, while premium models like the Invicto and Jimny will see increases of ₹30,000 and ₹1,500, respectively. Other models such as the Wagon-R, Swift, and Dzire will experience hikes of ₹13,000, ₹5,000, and ₹10,500, respectively.

Model-Wise Price Changes

Model Increase in 

Ex-Showroom Price (In ₹ )
Alto K10 Upto 19,500
S-Presso Upto 5,000
Celerio Upto 32,500
Wagon-R Upto 15,000
Swift Upto 5,000
Dzire Upto 10,000
Brezza Upto 20,000
Ertiga Upto 15,000
Eeco Upto 12,000
Super Carry Upto 10,000
Ignis Upto 6,000
Baleno Upto 9,000
Ciaz Upto 1,500
XL6 Upto 10,000
Fronx Upto 5,500
Invicto Upto 30,000
Jimny Upto 1,500
Grand Vitara Upto 25,000

Sales Figures for December 2024

In December 2024, Maruti Suzuki sold 1,78,248 units, a 30% increase compared to the previous year. This included 1,32,523 domestic sales, 37,419 exports, and 8,306 units sold to other OEMs.

Company Statement

The company talked about its commitment to minimising customer impact but acknowledged that external cost pressures necessitate a price hike. Maruti Suzuki’s vehicles currently range from ₹3.99 lakh for the Alto K10 to ₹28.92 lakh for the Invicto.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Vishnu Prakash JV Bags ₹51.40 crore Sewerage Project in Jaipur

Vishnu Prakash R Punglia Limited (VPRPL), along with its joint venture partners RBIPL and the Jaipur Development Authority (JDA), has been awarded a contract for constructing a 30 MLD (megalitres per day) sewerage treatment plant at Swarn Vihar, Sanganer, Jaipur.

The project will use Sequential Batch Reactor (SBR) technology, an approach to wastewater treatment. The Office of the Executive Engineer of JDA issued the Letter of Acceptance on January 23, 2025. The total value of the contract stands at ₹513.99 Million.

Details of the Project

The scope of the project includes engineering, procurement, construction, commissioning, and operational performance testing, followed by operations and maintenance (O&M). This tender was evaluated and finalized after a competitive bidding process, with VPRPL-RBIPL-JDA-JV emerging as the selected contractor.

Other Projects Secured by VPRPL

This is the third major order secured by VPRPL in January 2025. On January 2, the company was chosen as the lowest bidder for a ₹43.31 crore road development project in Rajasthan. This project involves the construction of a 2 lane bypass with paved shoulders and a new rail overbridge (ROB) to Mandal town in Bhilwara district.

On January 1, VPRPL secured another contract valued at ₹31.34 crore for elevation works of academic blocks at the Fintech Digital Institute in Jodhpur. The project was given by the Department of Information Technology and Communication, Government of Rajasthan.

Background

VPRPL, founded in 1986, is a construction and infrastructure firm with a presence in nine states and one union territory in India. The company is into building projects such as highways, flyovers, bridges, and residential complexes. As of September 30, 2023, the company reported an order book worth ₹5,086 crore.

Market Performance

Following the announcement of the Jaipur contract,  As of 10:53 AM today, on January 24, Vishnu Prakash R Punglia Ltd’s shares were trading at ₹250.70, down by 1.36% today, but showing a 12.29% rise over the past six months and up a 17.73% over the past year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Solar Industries’ Subsidiary to Invest ₹12,700 Crore in Nagpur Defence Hub

Economic Explosives Limited (EEL), a subsidiary of Solar Industries India Limited, has entered into an agreement with the Government of Maharashtra to develop a major defence and aerospace project in Nagpur. The MoU was signed on January 22, 2025, at the World Economic Forum in Davos, Switzerland. The proposed project will require an investment of approximately ₹12,700 crore.

As of 11:17 AM today, on January 24, Solar Industries India Ltd is priced at ₹9,578.85, marking a modest intraday rise of ₹19.95 (0.21%). While the stock has dipped by 9.32% over the past six months, it has delivered a 44.61% gain over the past year.

Focus on Defence Manufacturing

The project is to expand production capacity in areas including drones, unmanned aerial vehicles (UAVs), counter-drone systems, explosives, and other materials. Additionally, the initiative will include the development of new products, such as military transport aircraft.

The state government has agreed to assist EEL with the necessary approvals, permissions, registrations, and fiscal incentives required for the project. These facilitation measures will align with Maharashtra’s existing policies and regulations.

Other Developments 

Solar Industries has been expanding in the defence sector since its entry in 2010. The company recently secured export orders worth ₹2,039 crore for defence products. These orders, to be delivered over 4 years, shows the company’s presence in global markets.

Financial Overview

Solar Industries India Limited has a market capitalisation of over ₹86,000 crore. The company has a compound annual growth rate (CAGR) of 28.1% in profits over the past five years. As of September 2024, its order book stands at ₹5,757 crore.

Defence Sector

The Nagpur project represents a huge investment in the country’s defence and aerospace. By focusing on manufacturing and product diversification, EEL’s plans align with the broader goal of boosting the country’s strategic infrastructure. The project is to drive both technological and industrial growth in the region.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Nippon India MF Shines in Passive Funds: AUM Reaches ₹1.65 Lakh Crore

The Indian mutual fund industry has witnessed remarkable growth, with passive funds emerging as a dominant force. Nippon India Mutual Fund has achieved a significant milestone, commanding an Assets Under Management (AUM) of ₹1.65 lakh crore in passive funds alongside a robust 1.45 crore folios. This reflects not just Nippon’s leadership but also the broader industry trend towards index-based investing.

The Rise of Passive Funds in India

The overall AUM of the mutual fund industry reached nearly ₹69 lakh crore in December 2024, a substantial portion of which has come from passive funds. In terms of investor folios, passive funds now account for 3.89 crore folios, showcasing their growing popularity among retail and institutional investors alike. This shift towards passive investing highlights its appeal as a simple and cost-effective investment avenue.

Nippon India MF’s Record-Breaking Figures

Within this burgeoning market, Nippon India Mutual Fund has solidified its position. With ₹1.65 lakh crore AUM and an impressive 1.45 crore folios in the passive funds category, the fund house has demonstrated exceptional growth. This success underscores its ability to cater to evolving investor preferences and capture the opportunities presented by the rise of passive investing.

What Drives the Growth of Nippon India MF?

  1. Expansive Product Range:
    Nippon offers a comprehensive suite of ETFs and index funds, providing investors with multiple options to diversify across asset classes.
  2. Cost Efficiency:
    Low expense ratios make Nippon’s passive funds an attractive choice for cost-conscious investors seeking to maximise returns.
  3. Investor-Centric Approach:
    Through widespread financial education initiatives and a robust distribution network, Nippon has reached a diverse audience, including those in smaller cities and towns.

Passive Funds: A Game-Changer for the Industry

The growing traction of passive funds is a testament to their ability to provide market returns with minimal cost and effort. These funds are particularly appealing in volatile markets, where their low-risk, index-tracking nature offers stability and transparency.

While passive funds do not aim to outperform indices, their scalability and simplicity make them a valuable addition to an investor’s portfolio, especially for long-term financial goals.

Conclusion

Nippon India Mutual Fund’s growth in passive funds, with ₹1.65 lakh crore AUM and 1.45 crore folios, is a reflection of the broader industry shift. The mutual fund industry’s AUM of ₹69 lakh crore, with 3.89 crore folios in passive funds, highlights how investors increasingly favour simplicity, transparency, and cost efficiency.

As passive funds grow by leaps and bounds, they represent not just a trend but a fundamental change in the way Indians approach investing.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.