Asset managers have commenced July with a series of new fund offerings (NFOs), broadening investment possibilities across passive equity strategies and commodity-based products. These latest introductions include innovative equal-weight and momentum-driven index funds, exchange-traded funds (ETFs), funds of funds (FoFs), and a significant physical gold fund operating from GIFT City.
GIFT City's Artha Bharat FinMet Physical Gold Fund
Artha Bharat Investment Managers IFSC LLP, based in GIFT City, has launched the Artha Bharat FinMet Physical Gold Fund. This fund is among the first physical commodity investment funds to emerge from GIFT City following recent regulatory enhancements by the International Financial Services Centres Authority (IFSCA), effective January 2026, which incorporated commodity trading into the IFSC regulatory framework.
The fund, developed in collaboration with Singapore-based FinMet as its investment adviser, will allocate at least 95% of its assets to London Bullion Market Association (LBMA) standard gold bars traded on the India International Bullion Exchange (IIBX). Structured as an open-ended, passively managed fund, it facilitates weekly subscriptions and redemptions. Investors can opt for redemptions in cash or through physical delivery of gold, subject to specific terms. The gold holdings will be secured in insured vaults managed by India International Depository IFSC (IIDI), also regulated by IFSCA.
This initiative is poised to enhance GIFT City's bullion ecosystem by diversifying the available investment products. Artha Bharat highlights the fund as a pioneering institutional vehicle for holding physical gold via IIBX infrastructure as a financial investment, distinct from import-related transactions.
Axis Nifty50 Equal Weight Index Fund
Axis Mutual Fund has introduced the New Fund Offer (NFO) for the Axis Nifty50 Equal Weight Index Fund. This open-ended passive scheme tracks the Nifty50 Equal Weight Total Return Index (TRI). The NFO commenced on July 3 and will conclude on July 17.
The fund employs an equal-weight strategy, distributing investments equally across all 50 constituents of the Nifty index, with quarterly portfolio rebalancing. This approach differs from the market-cap-weighted Nifty 50, mitigating concentration risks in large-cap stocks and providing a more balanced exposure across the index. Nandik Mallik and Rohit Gautam will co-manage the scheme. A minimum investment of ₹100 is required, with a 0.25% exit load for redemptions within 15 days of allotment.
Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund
Motilal Oswal Mutual Fund has launched the NFO for the Motilal Oswal BSE Midcap 150 Momentum 30 Index Fund, an open-ended passive scheme designed to replicate the performance of the BSE Midcap 150 Momentum 30 Index. The NFO opened on July 3 and will close on July 17.
This fund will invest in 30 midcap stocks chosen from the BSE Midcap 150 Index, utilizing a momentum-based methodology that factors in 12-month price performance adjusted for volatility. The portfolio undergoes quarterly rebalancing to adapt to evolving market trends. The fund house notes that its underlying index achieved a five-year CAGR of 30.46% as of May 29, 2026, surpassing the BSE Midcap 150 TRI (18.31%) and Nifty 50 TRI (9.88%). The minimum investment is ₹500, with a 1% exit load for redemptions within 15 days of allotment. The fund will be managed by Swapnil Mayekar, Dishant Mehta, and Rakesh Shetty.
Mirae Asset BSE Midcap 150 Momentum 30 ETF & FoF
Mirae Asset Mutual Fund has unveiled two passive investment products linked to the BSE Midcap 150 Momentum 30 Index: an Exchange Traded Fund (ETF) and a Fund of Fund (FoF), thereby expanding its smart beta offerings. The NFO for the Mirae Asset BSE Midcap 150 Momentum 30 ETF runs from July 6 to July 13, while the NFO for its corresponding FoF will remain open until July 20.
The ETF aims to mirror the performance of the BSE Midcap 150 Momentum 30 Total Return Index, which comprises 30 stocks from the BSE Midcap 150 universe selected via a rules-based momentum strategy. The FoF will primarily invest in units of the ETF, enabling investors to access this strategy without direct stock exchange trading. The underlying index identifies stocks based on their 12-month risk-adjusted momentum, applying liquidity filters and capping each stock's weight at 5%. The portfolio is reviewed and rebalanced quarterly. Momentum investing seeks to capitalize on stocks showing sustained price strength, though such strategies may face challenges during abrupt market reversals. Given its focus on midcap stocks, investors can expect higher growth potential but should also anticipate relatively higher volatility. The minimum investment during the NFO period is ₹5,000, with additional investments in multiples of Re 1. Both schemes will be managed by Ekta Gala and Vishal Singh, benchmarked against the BSE Midcap 150 Momentum 30 Total Return Index.