scorecardresearchNFO Alert: Navi Mutual Fund launches Overnight Fund; all you need to know

NFO Alert: Navi Mutual Fund launches Overnight Fund; all you need to know

Updated: 11 Jul 2023, 10:34 AM IST
TL;DR.

Navi Mutual Fund announced the launch of the Navi Overnight Fund. The scheme opened for public subscription on July 11, 2023, and will close on July 14, 2023.

Navi Mutual Fund launches Navi Overnight Fund

Navi Mutual Fund launches Navi Overnight Fund

Navi Mutual Fund announced the launch of the Navi Overnight Fund, an open-ended debt scheme investing in overnight securities with relatively low-Interest rate risk and relatively low credit risk.

The scheme opened for public subscription on July 11, 2023, and will close on July 14, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

Q. What kind of mutual fund scheme is this?

This is an open-ended debt scheme investing in overnight securities with relatively low-interest rate risk and relatively low credit risk.

Q. What is the main objective of investing in this fund?

The investment objective of the scheme is to generate returns by investing in debt and money market instruments with overnight securities having a maturity of one day. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved. The scheme does not assure or guarantee any returns.

Q. How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of 10 per plan/option and in multiples of Re 1. There is no upper limit for investment.

The minimum application amount is applicable only at the time of the creation of the new folio.

The corpus of the scheme will be invested in money market and debt instruments and other permitted instruments, wherever applicable.

Q. Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched many such funds in the past. You may view some of them in the table below.

Mutual Fund House

Name of the Liquid Fund

Canara Robeco Mutual Fund

Canara Robeco Overnight Fund

Quant Mutual Fund

Quant Overnight Fund

Invesco Mutual Fund

Invesco India Overnight Fund

Bank of India Mutual Fund

Bank of India Overnight Fund

Axis Mutual Fund

Axis Overnight Fund

DSP Mutual Fund

DSP Overnight Fund

Q. How will the scheme benchmark its performance?

The scheme benchmark would be CRISIL Liquid Overnight Index.

The scheme intends to invest in a portfolio of instruments that is best captured by the CRISIL Liquid Overnight Index. CRISIL Liquid Overnight Index is a realistic estimate to track the returns of an Overnight Fund at a particular return and risk level and hence is used as a benchmark by most market participants. The benchmark and additional benchmark returns shall be calculated at the Total Return Index (TRI) variant of the index chosen.

The trustee reserves the right to change the benchmark for the evaluation of the performance of the scheme from time to time, keeping in mind the investment objective of the scheme and the appropriateness of the benchmark, subject to the regulations and other prevalent guidelines.

Q. 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”.

Q. Who will manage this scheme?

Surbhi Sharma is the designated fund manager of this scheme.

Q. Does the fund contain any inherent risk?

The scheme involves “Low 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 low risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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First Published: 11 Jul 2023, 10:34 AM IST