Mutual Fund Update: Performance of recently launched schemes
In India, since the beginning of 2021, various mutual funds have come up with new schemes. One can pretty much say that new fund offerings are raining in India. However, 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 recently launched equity-oriented mutual fund scheme offerings:
|
Mutual Fund Scheme
|
Inception Date
|
3-month performance
|
AUM (in crores) (as of 30th November 2021)
|
Expense Ratio (as of 31st October 2021)
|
3-months performance of the benchmark
|
|
Tata Business Cycle Fund
|
4th Aug 2021
|
1.4%
|
₹917.69
|
0.89
|
NIFTY 500 TRI = -0.26%
|
|
Nippon India Flexi Cap Fund
|
13th Aug 2021
|
2.5%
|
₹3,380.21
|
0.37%
|
NIFTY 500 TRI = -0.26%
|
|
Mahindra Manulife Flexi-cap Yojana
|
23rd Aug 2021
|
1.1%
|
₹867.24
|
0.16%
|
NIFTY 500 TRI = -0.26%
|
|
UTI Focused Equity Fund
|
25th Aug 2021
|
-1.3%
|
₹2,799.28
|
0.29%
|
NIFTY 500 TRI = -0.26%
|
As we can see in the above table, schemes have outperformed their benchmark in three months except for UTI focused equity fund, which has underperformed the benchmark. 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 outperform the benchmark in the longer term as well. 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.