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NFO alert: Nippon India Mutual Fund launched India’s first Nifty 500 Equal Weight Index Fund, details inside
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3 min read | Updated on August 21, 2024, 18:40 IST
SUMMARY
Nippon India Mutual Fund launched the Nippon India Nifty 500 Equal Weight Index Fund on August 21, 2024. This open-ended fund aims to mirror the Nifty 500 Equal Weight Index. The NFO is available until September 4, 2024, with no entry load and NIL exit load. The minimum investment is ₹1,000.
NFO alert: Nippon India Mutual Fund launched India’s first Nifty 500 Equal Weight Index Fund, details inside
The Nippon India Nifty 500 Equal Weight Index Fund is an open-ended index fund launched by Nippon India Mutual Fund on August 21, 2024. The fund aims to replicate the performance of the Nifty 500 Equal Weight Index, which comprises 500 stocks from the Nifty 500 index with equal weightage. The fund has no entry load and an exit load of NIL. The minimum subscription amount is ₹1,000. The new fund offer (NFO) for the fund is open till September 4, 2024.
Objective of Scheme: The investment objective of the Nippon India Nifty 500 Equal Weight Index Fund is to provide investment returns that are commensurate to the total returns of the securities as represented by the Nifty 500 Equal Weight Index before expenses, subject to tracking errors. However, there is no assurance that the investment objective of the scheme will be achieved.
Risk-o-meter:
Funds Allocation (for both Schemes)
| Types of Instruments | Minimum Allocation (% of Net Assets) | Maximum Allocation (% of Net Assets) | Risk Profile |
|---|---|---|---|
| Securities constituting Nifty 500 Equal Weight Index | 95 | 100 | Very High |
| Cash & cash equivalents and Money Market instruments and/or Schemes which invest in the money market securities or Liquid Schemes | 0 | 5 | Low to High |
Who should invest in this fund?
This NFO of the Nippon India Nifty 500 Equal Weight Index Fund is suitable for investors seeking long-term capital growth. It is designed for those who want investments in equity and equity-related securities with a portfolio that replicates the composition of the Nifty 500 Equal Weight Index, subject to tracking errors.
Benchmark
The performance of the Nippon India Nifty 500 Equal Weight Index Fund will be benchmarked to the performance of the Nifty 500 Equal Weight TRI.
Peer Fund Schemes
| Scheme Name | AUM (crore) | Expense Ratio (%) | 1 Year returns (%) | 3 Years returns (%) | YTD return (%) | Since Launch return (%) |
|---|---|---|---|---|---|---|
| UTI Nifty 500 Value 50 Index Fund | 468.41 | 1.03 | 82.38 | - | 34.33 | 77.59 |
| Motilal Oswal Nifty 500 Index Fund | 1990.87 | 0.88 | 38.17 | 18.54 | 19.69 | 21 |
| Motilal Oswal S&P 500 Index | 3438.82 | 1.13 | 29.05 | 12.42 | 18.33 | 19.3 |
| Axis Nifty 500 Index Fund | 0 | 0 | - | - | - | 0.42 |
Who Manages the Scheme?
Himanshu Mange (AUM (crore) - 148,174.97, Schemes – 46)
Himanshu Mange is a Chartered Accountant with 30 years of experience. He has been managing and dealing with ETFs at NAM India since the launch of the scheme in December 2023. Before this role, he worked as a Dealer - ETF at NAM India from February 2022 to December 2023, and from December 2019 to February 2022. Before joining NAM India, he was an Assistant Manager in Investment Operations – Finance & Accounts at TATA AIA Life Insurance Co. Ltd.
Conclusion
This new fund offer provides a way to invest in a broad array of stocks with equal weighting. It’s suitable for those seeking long-term capital growth through equity market exposure.
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