Upcoming NFO: NJ Mutual Fund Files Draft Papers with SEBI for NJ Value Fund

NJ Mutual Fund has filed draft documents with SEBI for the launch of NJ Value Fund, an open-ended equity scheme based on a value investing strategy.  

The scheme will aim to generate long-term capital appreciation through investments in equity and equity-related instruments of companies considered undervalued.  

Investment Strategy and Allocation 

According to the draft Scheme Information Document (SID), the fund will invest 80% to 100% of its assets in equities selected under a value investment framework.  

Up to 20% may be allocated to other equities, money market instruments, InvITs, gold and silver instruments, and other securities permitted by SEBI.  

The scheme plans to use a rule-based investment process to identify companies trading below their estimated intrinsic value.  

The model may use valuation measures such as price-to-earnings ratio, price-to-book value, EV/EBITDA, dividend yield, free cash flow yield, and discounted cash flow estimates.  

The SID stated that the scheme will also apply quality filters including return on equity, leverage levels, earnings growth, and cash flow stability while selecting stocks.  

Scheme Details 

The minimum investment amount during the New Fund Offer (NFO) and on an ongoing basis has been set at ₹500. The scheme will offer Regular and Direct plans with Growth and IDCW options. The fund will not levy any exit load.  

The primary benchmark for the scheme will be the Nifty 500 TRI, while the secondary benchmark will be the Nifty 500 Value 50 TRI.  

The fund may participate in stock lending and short selling within regulatory limits. However, the scheme will not invest in overseas securities, securitised debt, AT1 and AT2 bonds, or credit default swap transactions. 

Read More: Mutual Funds Reduce Exposure to Private Banks in April 2026 Despite Sector Remaining Top Holding! 

Conclusion 

NJ Value Fund is a new scheme and does not have any past performance record. The launch will add a dedicated value-focused equity offering to NJ Mutual Fund’s existing product lineup. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments in the securities market are subject to market risks, read all the related documents carefully before investing.