Right on the heels of the Motilal Oswal Multi-Asset Fund comes another multi-asset fund, this time from Nippon India Mutual Fund. The Nippon India Multi-Asset Fund is an open-ended scheme that invests in equity, debt and exchange-traded commodity derivatives, and gold ETFs. The NFO opens on 7 August 2020 and will close on 21 August 2020. Here’s all you need to know about this scheme.
| Good to know An NFO or new fund offer is when an asset management company launches a new fund and invites investors to subscribe to the fund for the first time. The amount collected through the NFO is then used to purchase stocks, bonds and other securities in the fund’s portfolio. |
Investment objective
The scheme aims to generate long-term capital appreciation by investing in a diversified portfolio comprising equity and equity-related securities, debt and money-market instruments and exchange-traded commodity derivatives and gold ETFs.
Click here to invest in the Nippon India Multi-Asset Fund - NFO
Asset allocation
The fund will be distributed between four non-correlated asset classes. These include Indian equity investment (50%), overseas equity investment (20%), commodities (15%), and fixed income investment (15%); distributions are approximate. This combination of four non-correlated asset classes is aimed to provide the portfolio with an effective hedge. That’s because each of these asset classes is at different levels of risk owing to fluctuations in business cycles, changes in the economy and geopolitical realities.
| Instruments | Allocations (% of total assets) | Risk profile | |
| Minimum | Maximum | High / Medium / Low | |
| Equity & equity-related securities (including overseas securities/overseas ETF) | 50 | 80 | High |
| Debt & money market instruments | 10 | 20 | Medium |
| Commodities* | 10 | 30 | Medium |
*Includes Gold ETF and exchange-traded commodity derivatives (ETCDs) where participation will be limited to derivatives contracts in Metals, Energy and Indices
Scheme details
| Name | Nippon India Multi-Asset Fund |
| Type | An open-ended scheme investing in Equity, Debt and Exchange Traded Commodity Derivatives and Gold ETFs |
| Category | Multi-asset allocation |
| Investment objective | To seek long term capital growth by investing in equity and equity-related securities, debt & money market instruments and Exchange Traded Commodity Derivatives and Gold ETFs. |
| Benchmark | 50% of S&P BSE 500, 20% of Crisil Short Term Bond Fund Index & 30% of Thomson Reuters - MCX iCOMDEX Composite Index |
| Entry/Exit Load | Entry Load - Nil. Exit Load: 1% if redeemed or switched out on or before completion of 1 year from the date of allotment of units. Nil, thereafter. |
| Plans | Regular and Direct |
| Fund managers | Mr. Manish Gunwani, CIO – Equity Investments, NIMF Mr. Ashutosh Bhargava, Fund Manager & Head- Equity Research, NIMF Ms. Kinjal Desai, Fund Manager – Overseas, NIMF Mr. Amit Tripathi, CIO - Fixed Income, NIMF Mr. Vikram Dhavan, Head - Commodities, NIMF |
| Options (under each plan) | Growth and Dividend |
| Minimum application amount | Rs 5,000 and in multiples of Re. 1 thereafter |
| Additional application amount | Rs 1,000 and in multiples of Re. 1 thereafter |
| Estimated expense ratio | 2% (maximum) |
Systematic Investment Plan (SIP)
An investor can benefit under this facility by investing specified amounts regularly. By investing a fixed amount of rupees at regular intervals, one would end up buying more units of the Fund when the price is low and fewer units when the price is high. As a result, over a period of time, the average cost per unit to the unitholder may tend to be less than the average subscription price per unit, irrespective of whether it is a rising, falling or fluctuating market. Thus, the unitholder automatically tends to gain and averages out the fluctuations of the market, without having to monitor prices on a day-to-day basis. This concept is called “rupee cost averaging”.
The minimum investment amount for investing SIP route is as follows:
| Monthly | Rs.100/- and in multiples of Re. 1/- thereafter for minimum 60 months |
| Monthly | Rs.500/- and in multiples of Re. 1/- thereafter for minimum 12 months |
| Monthly | Rs.1,000/- and in multiples of Re. 1/- thereafter for minimum 6 months |
| Quarterly | Rs.500/- and in multiples of Re. 1/- thereafter for minimum 12 quarters |
| Or Quarterly | Rs.1,500/- and in multiples of Re. 1/- thereafter for minimum 4 quarters |
| Yearly | Rs.5,000/- and in multiples of Rs.500/- thereafter, for minimum 2 years |
| This product is suitable for investors who are seeking* • Long term capital growth • Investment in equity and equity-related securities, debt & money market instruments and Exchange Traded Commodity Derivatives and Gold ETF | Riskometer Investors understand that their principal will be at Moderately High risk. |
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by Nippon India Mutual Fund. To read the entire document, click here.
Disclaimer
RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing. Investment in a mutual fund is subject to market risk; please read the offer document carefully before investing.