Upcoming NFO: Old Bridge Mutual Fund Filed Draft for Flexi Cap Fund With SEBI

Old Bridge Mutual Fund has sent its draft document to SEBI for a new open-ended equity scheme named Old Bridge Flexi Cap Fund. The fund will be priced at ₹10 per unit during the New Fund Offer (NFO). Once the NFO closes and units are allotted, the scheme will reopen for routine purchase and redemption within five business days. 

Investment Scope and Allocation 

The draft shows that the scheme plans to invest mainly in equity and equity-related instruments across large-cap, mid-cap and small-cap companies. The allocation range for equities is 65% to 100% of assets. Up to 35% may be deployed in debt and money market instruments, and investments in REITs and InvITs can go up to 10%.  

The scheme may also invest up to 35% in overseas securities, with an initial limit of $100 million valid for 6 months from the NFO close. 

Additional Instruments and Exposure 

The draft allows exposure to equity derivatives for hedging and non-hedging, where non-hedging exposure is capped at 50% of the equity portion. Short-term deployment of NFO proceeds may be parked in Tri-Party Repo (TREPS) without charging investment management fees during that temporary period. The scheme may lend securities under permitted limits and may also invest in other mutual fund units but not beyond 5% of its net assets. 

Benchmark, NAV and Plans 

The performance benchmark for the scheme will be BSE 500 TRI, which covers a wide mix of listed Indian companies. NAV will be published every business day and available on the AMC website and the AMFI platform by 11 p.m. Two plan options will be offered, Direct and Regular, with Growth and IDCW choices under both. 

Minimum Investment, Charges and Exit Load 

The minimum investment during the NFO is ₹5,000, with additional investments starting from ₹1,000. The draft mentions a maximum total expense ratio of up to 2.25% for the Regular Plan. There is no entry load, while an exit load of 1% applies if redeemed or switched within 365 days from allotment. Redemptions after this period carry no exit load. 

The scheme will be managed by Kenneth Joseph Andrade, who has over 34 years of experience in Indian equity markets and fund management. 

Read More: PPFAS Gets Nod for 2 New GIFT City-Based Funds: IFSC S&P 500 FoF and Nasdaq 100 FoF! 

Conclusion 

The draft filing outlines a flexi-cap structure that can invest across market segments in India along with room for limited overseas allocation. The fund will launch after regulatory approval. 

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 are subject to market risks, read all the related documents carefully before investing.