MF update: Performances of recently launched mutual fund schemes
In India, since the beginning of 2021, various mutual funds have come up with new schemes. The new fund offerings are raining in India. Investing in a new fund offering is not the best option unless a mutual fund is offering any unique scheme. As there is no past performance data available, there is no assurance that the investment objective of the scheme will be achieved. Let’s look at the performance of the following recent equity-oriented mutual fund scheme offerings:
|
Mutual fund schemes
|
Launch date
|
6, 3 – month performance
|
AUM (in crore) (as of July 31, 2021)
|
|
ICICI Prudential Business Cycle Fund
|
Jan 18, 2021
|
6 - month = 11.7 per cent
|
Rs 5,505
|
|
Nippon India Nifty 50 Value 20 Index Fund
|
Feb 19, 2021
|
6 – month = 23.2 per cent
|
Rs 36
|
|
Kotak Nifty Next 50 Index Fund
|
March 3, 2021
|
3 – months = 8.35 per cent
|
Rs 71
|
|
Invesco India ESG Equity Fund
|
March 18, 2021
|
3 – months = 13.84 per cent
|
Rs 691
|
|
Aditya Birla Sun Life Nifty Midcap 150 Index Fund
|
April 1, 2021
|
3 – months = 8.26 per cent
|
Rs 50
|
|
Canara Robeco Focused Equity Fund
|
May 17, 2021
|
3 – months = 12.78 per cent
|
Rs 967
|
As we can see in the above table, schemes have delivered good returns in 3 to 6 months i.e., in short term. One shouldn’t just rely on these returns and decide to invest as these may have performed well in the short term but there is no assurance that they will perform well in the longer term also. So, one should assess their risk profile, returns they expect, and also they should look at the portfolio, risk and other parameters of the mutual fund scheme.