Motilal Oswal Mutual Fund and Zerodha Mutual Fund have recently announced changes to their schemes, scheduled to take effect in early 2025. One significant modification by Motilal Oswal Mutual Fund involves the revision of the benchmark for their Motilal Oswal Ultra Short-Term Fund. The benchmark will be shifted from the CRISIL Ultra Short Duration Fund B-I Index to the CRISIL Ultra Short Duration Debt A-I Index, effective January 31, 2025. Investors should take note of these changes when planning their investments.
Furthermore, Zerodha Mutual Fund has made adjustments to the minimum investment and Systematic Investment Plan (SIP) amounts for their Zerodha Gold ETF Fund of Fund (FOF). As of February 3, 2025, the minimum application and additional purchase amount for this fund has been reduced from Rs 500 to Rs 100 per transaction. Additionally, the minimum SIP amount across all frequencies has also been decreased from Rs 500 to Rs 100.
NFOs open for investment
1. SBI Nifty IT Index Fund
SBI Mutual Fund has introduced the SBI Nifty IT Index Fund, an open-ended scheme designed to mirror the performance of the Nifty IT Index. The New Fund Offer (NFO) is scheduled to conclude on February 17, 2025. This fund presents investors with a convenient opportunity to access the Indian Information Technology (IT) sector, encompassing software development, hardware, IT infrastructure, and related activities.
The Nifty IT Index consists of 10 leading IT companies listed on the National Stock Exchange (NSE), selected based on their inclusion in the Nifty 500 index during the review period. These companies represent some of the largest and most prominent players in the Indian IT industry. The investment objective of the SBI Nifty IT Index Fund is to mimic the total returns of the Nifty IT Index, with consideration to tracking errors.
2. Baroda BNP Paribas Energy Opportunities Fund
Baroda BNP Paribas Mutual Fund introduced an energy opportunities fund known as the Baroda BNP Paribas Energy Opportunities Fund. This new fund offer (NFO) aims to seize growth opportunities within India’s energy sector.
The NFO opened on January 21, 2025 and will February 4, 2025 (today). The primary goal of the Baroda BNP Paribas Energy Opportunities Fund is to enable investors to capitalize on the expanding energy sector as India progresses towards becoming a developed economy. The fund will invest at least 80% of its assets in equity instruments of companies involved in both traditional and new energy sources across various market capitalizations.
This new fund will be compared against the Nifty Energy TRI, which has shown consistent outperformance compared to the Nifty 500 TRI over various time periods ranging from 3 to 10 years (as of December 31, 2024).
3. Edelweiss Consumption Fund
The Edelweiss Consumption Fund is currently open for subscription and will close on February 14. This open-ended equity scheme aims to generate long-term capital appreciation by primarily investing in equity and equity-related securities within the consumption and consumption-related sectors.
Managed by Dhruv Bhatia, Trideep Bhattacharya, and Amit Vora, the fund will be benchmarked against NIFTY India Consumption TRI. An exit load of 1% of the applicable NAV will apply if units are redeemed or switched out within 90 days of allotment. After this period, there will be no exit load.
The Edelweiss Consumption Fund is designed for investors seeking opportunities in India’s consumption-driven growth narrative. By investing in core, emerging, and cyclical businesses across a range of consumption sub-sectors, including FMCG, consumer staples, consumer durables, education, healthcare, and more, the fund offers a diversified approach to wealth creation. According to a company release, the fund is aimed at providing long-term wealth creation opportunities for investors.
The stock selection approach at the ‘Edelweiss Consumption Fund’ is agnostic in its investment style, focusing on businesses that can be classified as quality leaders, growth champions, and value picks.