Navi Mutual Fund announced the launch of the Navi Nifty 50 ETF, an open-ended exchange-traded fund (ETF) replicating/tracking the Nifty 50 Index.
The scheme opened for public subscription on September 11, 2023, and will close on September 15, 2023.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund (ETF) replicating/tracking the Nifty 50 Index.
“We are excited to announce the launch of our 1st ETF; Navi Nifty 50 ETF marks our first foray into this segment and we are keen to replicate the success we have had with passive funds. We will continue to strive to set standards when it comes to tracking errors and expense ratios when it comes to ETFs while giving our investors the flexibility and convenience to trade real-time on the stock exchange,” said Sachin Bansal, Co-founder, Navi Group.
What is the main objective of investing in this fund?
The investment objective of the scheme is to provide returns before expenses that correspond to the total return of the underlying index subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹250 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
|Types of Instruments
Indicative allocations (% of total assets)
Securities covered by Nifty 50
Medium to High
Money Market Instruments including TREPs
Low to Medium
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such Nifty 50 ETFs, 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
Nifty 50 ETF
Nippon India Mutual Fund
Nippon India ETF Nifty 50 BeES
Kotak Mahindra Mutual Fund
Kotak Nifty 50 ETF
LIC Mutual Fund
LIC Nomura MF ETF - NIFTY 50
SBI Mutual Fund
SBI ETF Nifty 50
Tata Mutual Fund
|Tata Nifty ETF
HDFC Mutual Fund
|HDFC Nifty 50 ETF
Aditya Birla Sun Life Mutual Fund
|Aditya Birla Sun Life Nifty 50 ETF
Axis Mutual Fund
|Axis Nifty ETF
UTI Mutual Fund
|UTI Nifty 50 ETF
Mirae Asset Mutual Fund
|Mirae Asset Nifty 50 ETF
DSP Mutual Fund
|DSP Nifty 50 ETF
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked with Nifty 50 Index TRI. On the basis of the investment objective of the scheme, Nifty 50 has been selected as the benchmark of the scheme. The corpus of the Scheme will be invested in stocks constituting the Nifty 50 Index and subject to tracking errors, the Scheme would endeavour to attain returns comparable to the Nifty 50 Index. This would be done by investing in almost all the stocks comprising the Nifty 50 Index in approximately the same weightage that they represent in the Nifty 50 Index.
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 marked “Nil”.Redemption of units would be done on First in First out Basis (FIFO).
Who will manage this scheme?
The scheme will be managed by Aditya Mulki and Ashutosh Shirwaikar.
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.