NJ Mutual Fund announced the launch of the NJ Flexicap Fund, an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks.
The scheme opened for public subscription on August 15, 2023, and will close on August 29, 2023. The scheme re-opens within five business days from the date of allotment.
What kind of mutual fund scheme is this?
This is an open-ended dynamic equity scheme investing across large-cap, mid-cap, and small-cap stocks.
What is the main objective of investing in this fund?
The investment objective of the scheme is to generate long-term capital appreciation by investing in equity and equity-related instruments across market capitalizations. However, there is no assurance or guarantee that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹500 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Instruments | Indicative allocations (% of total assets) | Risk Profile |
Equity & Equity related instruments | 65%-100% | Medium to High |
Debt and money market instruments | 0%-35% | Low to Medium |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such flexicap funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Name of the fund | Ten-year returns (in %) |
JM Flexi Cap Fund | 17.80% |
Aditya Birla Sun Life Flexi Cap Fund | 17.35% |
Kotak Flexi Cap Fund | 17.23% |
SBI Flexi Cap Fund | 16.98% |
HDFC Flexi Cap Fund | 16.65% |
Franklin India Flexi Cap Fund | 16.62% |
DSP Flexi Cap Fund | 16.34% |
HSBC Flexi Cap Fund | 15.22% |
Bandhan Flexi Cap Fund | 14.74% |
| Source: MoneyControl | |
How will the scheme benchmark its performance?
The Board adopted benchmarks for comparing the performance of the scheme as NIFTY 500 TRI. Since the composition of the index is most suited for comparing the performance of the scheme. It will also enable the investors to arrive at a more informed judgement on scheme performances.
The benchmark of the scheme shall be updated in line with SEBI Regulations, circulars, and directives, issued from time to time.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as per the following:
- “Nil Exit Load” for 5% of the units up to completion of 30 days
- “1% Exit Load” if units are redeemed/switched out on or before 30 days from the date of allotment
“Nil Exit Load” if redeemed after 30 days from the date of allotment.
Who will manage this scheme?
Dhaval Patel would be looking after the investments in this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
