The scheme’s new fund offer or NFO is open for subscription and will close on September 4.
The investment objective of the scheme is to provide investment returns proportional to the total returns of the securities represented by the Nifty 500 Equal Weight Index before expenses, subject to tracking errors.
The scheme will allocate 95% to 100% in securities constituting the Nifty 500 Equal Weight Index and 0% to 5% in cash and cash equivalents and money market instruments and/or schemes investing in money market securities or liquid schemes.
The performance of the scheme will be compared with the Nifty 500 Equal Weight TRI Index. The scheme will be managed by Himanshu manyThe output charge is zero.
The minimum investment amount required during NFO is Rs 1,000 and thereafter in multiples of Rs 1. The fund is a differentiated offering that seeks to provide investors with exposure to a diversified basket of 500 companies, with each stock having equal weightage in the portfolio. This approach tends to mitigate the concentration risk typically associated with market-cap weighted indices and provides a unique opportunity to participate in the growth of the broader Indian market. According to the fund manager, investors looking to tap into India’s growth story should have exposure to a broader market comprising large-, mid- and small-cap companies that can drive long-term growth.
The Nifty 500 Equal Weight Index is well diversified with investments in 500 stocks spread across 21 sectors. The index would offer 20% exposure to large-cap stocks, 30% to mid-cap stocks and 50% to small-cap stocks, a combination that is rare to find in other funds in the market.
“Building on our strong track record in passive investing, we are excited to launch the ‘Nippon India Nifty 500 Equal Weight Index Fund’, a Smart-Beta strategy that would adopt an equal weighting approach in contrast to popular indices like the Nifty 500, which use a market capitalisation weighting approach,” he said. Sikka under the sunManaging Director & CEO, Nippon India Mutual Fund.
The scheme is suitable for investors seeking long-term capital growth and desire investments in equity and equity-related securities and a portfolio that replicates the composition of the Nifty 500 Equal Weight Index, subject to tracking errors.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.