NFOs this week: Tata’s short-term debt fund, Invesco’s defence and chemical funds at a glance

Three new fund offers (NFOs) are open for subscription this week, with Tata Asset Management launching a short-term debt index fund and Invesco Mutual Fund offering passive exposure to the defence and chemical sectors. The Tata NFO closes on September 22, while both Invesco schemes remain open until September 29.

Tata CRISIL-IBX Financial Services 3-6 Months Debt Index Fund

Tata Asset Management’s Tata CRISIL-IBX Financial Services 3-6 Months Debt Index Fund opened for subscription on September 15 and will close on September 22. The open-ended debt index fund will track the CRISIL-IBX Financial Services 3-6 Months Debt Index (TRI).

The fund will invest in securities issued by financial services companies, including banks, NBFCs, housing finance companies and financial institutions. Under normal circumstances, 95-100% of its net assets will be invested in index constituents such as certificates of deposit, commercial papers and corporate bonds, with the balance in cash and money market instruments.

The underlying index is limited to AAA-rated financial services issuers. Exposure is capped at 15% per issuer and 25% at the group level, with the index rebalanced quarterly.

The scheme targets the 3-6 month maturity segment and seeks to generate accrual income and potential gains as securities mature or “roll down” the short-term yield curve.

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Tata Asset Management said the fund is aimed at short-term surplus deployment while limiting duration and credit risks. It carries a “Low to Moderate” risk level. The minimum investment is ₹5,000, followed by investments in multiples of ₹1. A 0.25% exit load applies if units are redeemed or switched out within 30 days of allotment.

Invesco India Nifty India Defence Index Fund

Invesco’s Nifty India Defence Index Fund also opened on September 15 and will close on September 29. The open-ended index fund will replicate the Nifty India Defence Index, investing in its constituents in the same weights, subject to tracking error.

The index covers companies across aerospace and defence manufacturing, defence electronics, shipbuilding and explosives. The fund house cited higher defence spending, indigenisation and export opportunities as growth drivers for the sector.

Invesco India Nifty Chemical Index Fund

The Invesco India Nifty Chemical Index Fund will track the Nifty Chemical Index, which includes companies across specialty chemicals, agrochemicals, commodity chemicals, fertilisers, industrial gases, explosives and related segments.

Invesco said domestic consumption, value-added manufacturing and global supply-chain diversification are supporting opportunities in the chemical sector.

Both Invesco funds have a ₹100 minimum investment, with daily SIPs starting at ₹20 through digital platforms. Weekly and monthly SIPs start at ₹100, while quarterly SIPs start at ₹300. Neither scheme has an exit load. Both will be managed by Abhisek Bahinipati.

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