Nippon India Mutual Fund on August 8, 2023 announced the launch of Nippon India Innovation Fund.
The open-ended thematic fund will invest in a diversified portfolio of companies across themes, such as fintech, specialty chemicals and pharma, auto and auto ancillaries, Internet-based businesses, and multinational companies (MNCs), among others.
The performance of the scheme shall be benchmarked against Nifty 500 TRI. The scheme has been kept in the very high risk category.
NFO Details
The new fund offer (NFO) will open for subscription on August 9, 2023 and close on August 23. The minimum investment amount is Rs. 500 and in multiples of Re. 1 thereafter.
Investors can choose either the growth or the dividend option. The fund will have an exit load of 1 per cent if redeemed or switched out on or before completion of one year from the date of allotment of units, and nil thereafter
Investment Strategy
Nippon India Mutual Fund said the scheme will invest at least 80 per cent of its assets in innovative companies that have the potential to disrupt their industries and create significant value for investors in the long term.
“It will have the flexibility to invest across market caps and sectors. The fund’s flexibility will allow it to identify the better investment opportunities by identifying companies ahead of the curve in new innovation, technologies or business models. The fund may be well-positioned to capture companies that have the potential for significant growth,” it said in a statement.
The scheme will invest in the top 500 stocks as per market capitalisation. Lastly, it will focus on high quality businesses, on companies taking advantage of early trends and on companies which have a growth bias, it said.
According to Nippon India Mutual Fund, the scheme is suitable for those investors who are seeking long-term capital growth and also want to invest in equity and equity-related securities of companies adopting innovation as a theme.
Sailesh Raj Bhan, CIO – equity investments, Nippon India Mutual Fund said: “Over the next 20 years India is likely to witness significant investment in Innovation and R&D (Research & Development). The need for creating differentiation through innovation is a key growth driver for the long-term success of any business. Participating in this space is critical as Innovation-led transformation and transition may offer growth possibilities across multiple segments. We are launching Nippon India Innovation Fund to capture some of these potential opportunities.
