Mutual Fund News for February 2026
Baroda BNP Paribas Money Market Fund crosses Rs. 4,500 crore AUM in six years
Baroda BNP Paribas Mutual Fund’s Money Market Fund has completed six years of operations, crossing assets under management (AUM) of Rs. 4,500 crore, underscoring growing investor preference for low-risk, high-liquidity debt products. The open-ended scheme invests in high-quality money market instruments and is positioned as a parking avenue for short-term surpluses with minimal interest rate and credit risk.
According to the fund house, the portfolio follows an active interest rate and liquidity-driven strategy while focusing on stable accrual. Investments are largely in AAA and A1+ rated securities, ensuring high credit quality. As of January 15, 2026, the fund’s regular plan delivered one-year returns of 7.16 per cent, outperforming its benchmark, the CRISIL Money Market A-I Index, which reported sub-7 per cent returns.
In a declining interest rate environment, the scheme has offered a competitive alternative to traditional short-term instruments. An investment of Rs. 1 lakh at launch would have grown to around Rs. 1.42 lakh over six years. The fund is managed by Vikram Pamnani and Gurvinder Singh, with a portfolio yield to maturity of 6.78 per cent and a modified duration of 0.43 years.
SBI Mutual Fund launches SBI Quality Fund with quality-factor strategy
SBI Mutual Fund has announced the launch of SBI Quality Fund, an open-ended equity scheme based on the Quality Factor investing theme. The new fund offer (NFO) will open for subscription on January 28 and close on February 11.
The scheme aims to generate long-term capital appreciation by investing in equity and equity-related instruments of companies selected on the basis of quality metrics, including strong fundamentals, sound governance practices and sustainable business models. The fund will invest between 80 and 100 per cent of its assets in quality-factor-based equity and equity-related instruments, including REITs, while the balance may be allocated to other equities, debt securities, money market instruments and InvITs, in line with SEBI norms.
Nand Kishore, MD and CEO of SBI Funds Management, said the fund aligns with the AMC’s disciplined investment philosophy and seeks to participate in wealth creation across market cycles. D P Singh, Deputy MD and Joint CEO, said the scheme is suited for investors looking to build long-term equity exposure focused on financially strong companies with healthy balance sheets.
Edelweiss Mutual Fund launches Financial Services Fund
Edelweiss Mutual Fund has launched the Edelweiss Financial Services Fund, an open-ended equity scheme that will invest primarily in equity and equity-related securities of companies across the financial services sector. The new fund offer is currently open and will close on February 10.
The scheme seeks to generate long-term capital appreciation by adopting a bottom-up stock selection approach, focusing on businesses with strong fundamentals, sustainable profitability and long-term growth potential. It will invest across segments such as banking, insurance, capital markets and other financial intermediaries, reflecting the breadth of India’s financial ecosystem.
The fund will be benchmarked against the Nifty Financial Services TRI and will be managed by Ashwani Agarwalla, Trideep Bhattacharya and Amit Vora. The minimum investment amount during the NFO period is Rs. 100, and thereafter in multiples of Re. 1.
Radhika Gupta, MD and CEO of Edelweiss Asset Management Company, said the financial services sector is benefiting from structural trends such as rising consumption, financialisation of savings, favourable demographics and rapid digital adoption, creating long-term investment opportunities across the sector.
Union Mutual Fund enters SIF space with launch of Arthaya SIF
Union Mutual Fund has announced its entry into the Specialized Investment Fund (SIF) segment with the launch of Arthaya SIF, a new platform offering purpose-led, actively managed investment strategies across equity, hybrid and fixed income categories. The initiative marks a strategic expansion of the AMC’s product portfolio.
Arthaya SIF is positioned between traditional mutual fund offerings and high-ticket alternatives such as portfolio management services and alternative investment funds. According to the fund house, the platform is designed to provide sharper, more flexible strategies aligned with specific investor outcomes and long-term objectives.
The name ‘Arthaya’ is derived from the Sanskrit word ‘Artha’, meaning wealth, and reflects the AMC’s philosophy of purposeful wealth creation rooted in Indian values with a modern investment outlook. The platform aims to cater to investors seeking customised and outcome-oriented portfolios without moving entirely into alternative investment structures.
Madhu Nair, CEO of Union AMC, said the launch allows the fund house to participate in a fast-evolving investment segment and offer differentiated strategies that balance flexibility, active management and clarity of purpose, in line with changing investor preferences.
ICICI Prudential Mutual Fund to grandfather two fund-of-funds schemes under SEBI framework
ICICI Prudential Mutual Fund has announced that it will grandfather two of its fund-of-funds (FoF) schemes under the Securities and Exchange Board of India’s (SEBI) revised framework, with effect from January 27, 2026. The schemes are ICICI Prudential Passive Multi-Asset Fund of Fund and ICICI Prudential Global Advantage Fund (FoF).
The asset management company informed unitholders through a notice-cum-addendum that the decision follows SEBI’s communication to the Association of Mutual Funds in India (AMFI) dated February 6, 2025, on the framework for launching FoF schemes with multiple underlying funds. The move is also based on subsequent amendments and clarifications, including SEBI’s letter dated January 20, 2026, which permitted grandfathering of certain existing schemes.
According to the notice, the two schemes could not be classified under any of the categories specified in the revised FoF framework due to their existing investment objectives and asset allocation structures. As a result, SEBI has allowed them to continue in their current form under the grandfathering provision.
The fund house clarified that the grandfathering ensures continuity for existing investors while remaining compliant with regulatory requirements, without altering the schemes’ stated objectives or portfolio construction.
Jio BlackRock Mutual Fund launches sector rotation equity fund
Jio BlackRock Mutual Fund has announced the launch of the Jio BlackRock Sector Rotation Fund, a new equity scheme designed to dynamically adjust sector exposure across market cycles. The fund will be powered by BlackRock’s Systematic Active Equities (SAE) investment approach.
The new fund offer (NFO) will open for subscription on January 27 and close on February 9. The scheme will be benchmarked against the Nifty 500 Index TRI and managed by Tanvi Kacheria and Sahil Chaudhary.
According to the fund house, the sector rotation strategy aims to capture sector-level alpha rather than focusing solely on individual stock selection. Unlike flexicap or diversified equity funds that typically follow a bottom-up approach, the new scheme adopts a top-down framework, dynamically reallocating capital across sectors based on changing macroeconomic and market conditions.
The fund is positioned as a complement to core equity allocations, offering investors an additional tool to navigate market volatility and evolving economic trends. Used alongside traditional equity strategies, the sector rotation approach is expected to enhance diversification and improve risk-adjusted returns over time.
The fund house said the scheme is suited for investors seeking an incremental allocation that strengthens existing portfolios rather than replacing long-term equity holdings.
Axis Mutual Fund launches BSE India Sector Leaders Index Fund
Axis Mutual Fund has launched the Axis BSE India Sector Leaders Index Fund, an open-ended index fund that seeks to track the BSE India Sector Leaders Index. The new fund offer (NFO) will open on January 23 and close on February 6.
The scheme will be managed by Karthik Kumar, with a minimum investment amount of Rs. 100. The fund aims to provide long-term wealth creation by offering exposure to leading companies across key sectors of the Indian economy.
According to the fund house, the index represents market leaders from 21 sectors within the broader BSE 500 universe. It comprises the top three companies from each sector, selected based on average six-month daily total market capitalisation. This methodology ensures exposure to established businesses with significant scale, liquidity and sectoral leadership.
The fund is designed to provide diversified sectoral exposure through a single passive investment, allowing investors to participate not only in dominant sectors but also in emerging and niche segments of the economy. By focusing on sector leaders, the scheme seeks to balance stability with growth potential.
Axis Mutual Fund said the offering is suitable for investors looking for broad-based equity exposure through a transparent, rules-based index strategy.
