Navi Mutual Fund has launched the Navi Nifty 500 Multicap 50:25:25 Index Fund. According to Navi Mutual Fund, it is India’s first index fund tracking the Nifty 500 Multicap 50:25:25 index.
NFO Details
The fund’s new fund offer (NFO) will be available for subscription from July 18-30, 2024. Investors can subscribe to the fund with a minimum investment amount of Rs 10, with subsequent investments in multiples of Re 1. There is no entry or exit load.
Scheme Allocation
The fund will allocate 50 per cent to large-cap, and 25 per cent each to mid-cap and small-cap categories, with the purpose of lowering concentration risk as compared to the Nifty 500.
Advertisement
According to Navi Mutual Fund, the scheme offers investors with diversified exposure to large-, mid- and small-cap businesses in the Indian stock market.
“The Navi Nifty 500 Multicap 50:25:25 Index Fund offers a well-balanced investment opportunity for those looking to tap into the Indian market. With 50 per cent allocated to large-cap companies for balanced allocation and the rest to mid- and small-cap companies for potential growth, this fund mitigates the risk of individual stock selection or market-timing, thus ensuring a balanced and strategic approach,” Navi Mutual Fund said in a press release..
According to Navi Mutual Fund, the scheme aims to generate returns corresponding to the performance of the Nifty 500 Multicap 50:25:25 index. Compared to the Nifty 500 index, which has a large-cap allocation of around 71.8 per cent, this scheme provides significantly higher exposure to mid-cap and small-cap companies, it said.
Advertisement
“This increased exposure offers investors the potential for higher growth prospects over the long term. Being an index fund, the expense ratio will be the lowest as compared to active funds in the multi-cap category. Unlike actively managed funds, the Navi Nifty 500 Multicap 50:25:25 Index Fund will passively track the index,” it added.
Who Should Invest?
Navi Mutual Fund said the scheme is suitable for investors wanting to create capital appreciation over the long term and diversify exposure across market capitalisation. It is also suitable for those who want to invest in equity and equity-related securities covered by Nifty 500 Multicap 50:25:25 index and are seeking returns corresponding to the index.
