June 2025 Mutual Fund New Fund Offers (NFOs)
This guide analyzes the goals, schedules, and key features of the top seven NFOs available in June 2025. We'll also examine current market conditions, including the Reserve Bank's recent monetary policy decision, and why this may be a favorable time for new investments.
Market Developments - June 2025
The Reserve Bank of India (RBI) has implemented a significant 50 basis point reduction in the repo rate, bringing it down to 5.5%. This decision reflects the central bank's confidence in controlling inflation while supporting economic growth.
Why This Matters for Investors
Rate cuts typically make fixed-income investments less attractive, potentially driving capital toward equity markets. This environment often creates favorable conditions for new fund launches as investors seek higher returns.
NFO Overview & Statistics
Detailed NFO Information
| Scheme Name | AMC | NFO Opens | NFO Closes | Min. Subscription | Load Structure | Category |
|---|---|---|---|---|---|---|
| DSP Nifty Healthcare Index Fund | DSP Mutual Fund | June 02, 2025 | June 16, 2025 | ₹100 & any amount thereafter | Entry Load: Nil Exit Load: Nil |
Index – Sectoral (Healthcare) |
| DSP Nifty IT Index Fund | DSP Mutual Fund | June 02, 2025 | June 16, 2025 | ₹100 & any amount thereafter | Entry Load: Nil Exit Load: Nil |
Index – Sectoral (IT) |
| Groww Nifty 500 Low Volatility 50 ETF | Groww Mutual Fund | May 28, 2025 | June 11, 2025 | ₹500 & multiples of ₹1 thereafter | Entry Load: Nil Exit Load: Nil |
ETF – Low Volatility |
| Motilal Oswal BSE 1000 Index Fund | Motilal Oswal MF | June 05, 2025 | June 19, 2025 | ₹500 | Exit Load: 1% if redeemed ≤15 days; Nil thereafter | Index – Broad Market (BSE 1000) |
| Nippon India Income Plus Arbitrage Active FoF | Nippon India MF | June 02, 2025 | June 11, 2025 | ₹500 & multiples of ₹1 thereafter | Exit Load: Nil | Hybrid – Conservative (Arbitrage FoF) |
| Samco Large & Mid Cap Fund | Samco Mutual Fund | June 05, 2025 | June 19, 2025 | ₹5,000 & multiples of ₹1 thereafter | No load on first 10% of units in 12 mths; 1% thereafter (if redeemed ≤12 mths) | Equity – Large & Mid Caps |
| Tata Nifty Midcap 150 Index Fund | Tata Mutual Fund | June 02, 2025 | June 16, 2025 | ₹5,000 | Exit Load: 0.25% if redeemed ≤15 days | Index – Midcap |
Key Features & Considerations
Sector-Specific Funds
Healthcare and IT sector funds offer targeted exposure but come with higher volatility. Consider these for satellite allocations rather than core holdings.
Low Volatility ETFs
Low volatility ETFs aim to provide steadier returns during market turbulence, making them suitable for risk-averse investors.
Arbitrage Strategies
Arbitrage funds exploit price differences in different markets. They typically offer lower risk than pure equity funds.
Why June 2025 Presents Opportunity
The RBI's rate cut creates a favorable environment for equity investments. Lower interest rates typically:
- Reduce borrowing costs for companies, potentially boosting earnings
- Make fixed-income investments less attractive relative to equities
- Stimulate economic growth, benefiting corporate earnings
New fund offers provide an opportunity to enter the market at NAV (Net Asset Value) without paying a premium. However, investors should carefully evaluate each fund's strategy and alignment with their financial goals.
Market Overview & Key Drivers
Market Momentum
In early June 2025, the Nifty index reached a significant milestone of 25,000, driven by a strong 16% rise year-to-date. This indicates robust positive sentiment among investors.
Sectoral Opportunities
IT and Healthcare have led the charge with impressive gains. Midcaps are also poised for growth, benefiting from a renewed appetite for risk in the market.
Policy Tailwinds
The Reserve Bank of India (RBI) has provided a significant boost to the market by lowering the repo rate to 5.5%. This move is designed to increase liquidity and support equity prices.
Global Factors
The US Federal Reserve's rate cut has tempered the impact of the RBI's move, making defensive positioning and low-volatility strategies attractive. Meanwhile, IT services exports hit a record $200bn in FY25, highlighting global demand.
Also Read: Best Defence Sector Mutual Funds List 2025
NFO Breakdown: June 2025 Offers
| Fund Name & Type | Investment Objective | Why Now? (Key Rationale) | Suitable For Investors... |
|---|---|---|---|
| 1. DSP Nifty Healthcare Index Fund Sectoral Index Fund |
Aims to replicate the Nifty Healthcare TRI by investing in the top 25 healthcare stocks, with minimal tracking error. | The healthcare index is up 18% YTD, supported by stronger-than-expected Q4 earnings. | Seeking sectoral growth through a low-cost index fund. |
| 2. DSP Nifty IT Index Fund Sectoral Index Fund |
Aims to track the Nifty IT TRI, providing returns that mirror the IT index performance. | IT services exports reached a record $200bn in FY25, signaling strong global demand. | Who believe in the tech story, have a long-term horizon, and want to benefit from global digital spending. |
| 3. Groww Nifty 500 Low Volatility 50 ETF Smart-Beta ETF |
Invests in the 50 least volatile stocks from the Nifty 500 universe to achieve lower drawdowns. | With central bank rate cuts influencing volatility, a defensive position is attractive. | Looking for conservative equity exposure in a format that is tradable like a stock (ETF). |
| 4. Motilal Oswal BSE 1000 Index Fund Broad Market Index Fund |
Designed to reflect the returns of the BSE 1000 TRI, covering the top 1,000 listed companies. | Broad market breadth is supporting a resurgence in small and mid-cap stocks. | Seeking suitably diversified equity exposure beyond just the Nifty 50. |
| 5. Nippon India Income Plus Arbitrage FoF Arbitrage Fund of Funds |
Utilizes pure arbitrage and debt strategies to generate stable, low-risk returns. | Arbitrage spreads are currently averaging 1.2%, offering a juicy yield pick-up in the current environment. | Seeking low-risk, tax-efficient income with the potential for moderate upside. |
| 6. Samco Large & Mid Cap Fund Large & Mid Cap Fund |
A blended portfolio of the top 100 large-cap and the next 150 mid-cap companies. | Midcaps are leading a sectoral revival, while large caps provide stability. This fund combines both. | Who want a balance of equity risk with a distinct growth tilt. |
| 7. Tata Nifty Midcap 150 Index Fund Midcap Index Fund |
Aims to track the Nifty Midcap 150 TRI, capturing the performance of the mid-sector champions. | Midcaps have surged 22% YTD as investors increasingly favor long-term, high-return opportunities. | Aggressive growth seekers with a high-risk tolerance. |
Investor Checklist: A Prudent Approach
Determine Your Timeframe
Match your personal investment horizon (short, medium, or long-term) with the strategy of each NFO.
Examine Costs
Check the Total Expense Ratios (TERs). Index funds and ETFs should be low-cost, typically around 0.30% annually.
Allocate Wisely
Build a diversified portfolio by combining sectoral, midcap, and arbitrage funds according to your risk tolerance.
Stay Informed
Keep an eye on market trends, policy changes (like RBI rates), and corporate profit drivers that could impact your investments.