Navi Mutual Fund announced the launch of the Navi S&P BSE Sensex Index Fund, an open-ended index scheme that aims to replicate the composition of the S&P BSE Sensex Index and to generate returns that are commensurate with the performance of the S&P BSE Sensex Index, subject to tracking errors. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
The scheme opened for public subscription on August 21, 2023, and will close on September 01, 2023. The scheme re-opens for continuous sale and repurchase on September 07, 2023.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund that aims to replicate the composition of the S&P BSE Sensex Index and to generate returns that are commensurate with the performance of the S&P BSE Sensex Index, subject to tracking errors.
This product is suitable for investors seeking
- Long-term wealth creation solution
- An index fund that seeks to track returns by investing in a basket of S&P BSE SENSEX Index stocks and aims to achieve returns of the stated index, subject to tracking error.
What is the main objective of investing in this fund?
The investment objective of the scheme is to generate returns that are commensurate with the performance of the S&P BSE Sensex Index, subject to tracking errors. There is no assurance that the investment objective of the scheme will be realized.
How may one invest in this scheme?
The minimum application for the issue of units shall be made for a minimum of ₹10 plus in multiples of Re 1 during the NFO. The minimum application amount for switches is ₹10 and any amount, thereafter.
Under normal circumstances, the asset allocation of the scheme will be as follows:
Indicative allocations (% of total assets)
Equity and equity-related securities of companies constituting the underlying index, i.e., the S&P BSE Sensex Index
Medium to High
Debt and Money Market instruments
Low to Medium
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such Sensex index fund schemes, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Mutual Fund House
HDFC Mutual Fund
HDFC Index Sensex Plan
LIC Mutual Fund
LIC MF Index Sensex Plan
Nippon India Mutual Fund
Nippon India Index S&P BSE Sensex Plan
ICICI Prudential Mutual Fund
ICICI Prudential S&P BSE Sensex Plan
TATA Mutual Fund
Tata S&P BSE Sensex Index Plan
UTI Mutual Fund
UTI S&P BSE Sensex
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the S&P BSE Sensex TRI.
The S&P BSE Sensex is India’s most tracked bellwether index. It is designed to measure the performance of the 30 largest, most liquid, and financially sound companies across key sectors of the Indian economy that are listed at BSE.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would also be“Nil”.
Who will manage this scheme?
Aditya Mulki is the designated fund manager of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.