Nippon India Nifty India Manufacturing ETF: Key points to know about the upcoming fund

Nippon India Mutual Fund has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch a new exchange-traded fund (ETF), Nippon India Nifty India Manufacturing ETF. The upcoming fund is an open-ended ETF that will try to replicate the Nifty India Manufacturing Index.

Fund type and objective

• Category: Other - ETFs
• Type: Open-ended scheme tracking Nifty India Manufacturing Index

This ETF will provide returns in line with the Index by passively investing in the same stocks and weights as the index. The Nifty India Manufacturing Total Returns Index (TRI) will be the benchmark.

The Nifty India Manufacturing Index is designed to represent the performance of India’s manufacturing sector. It includes diversified companies that are part of the manufacturing activities, aimed at capturing the growth and trends in the country’s manufacturing industry. Subject to tracking errors, the ETF will passively replicate the index by investing in the same stocks and delivering matching returns.

The Total Return Index (TRI) version will be used for benchmarking as it tracks performance by including reinvested dividends, giving a more accurate depiction of total returns.

Asset allocation

• At least 95% of assets will be in index securities
• Up to 5% in cash, cash equivalents, or money market instruments

Minimum investment

• During the new fund offer (NFO) period: ₹1,000 and in multiples of ₹1 thereafter.
• On exchange: 1 unit and multiples thereafter
• Directly with fund (for large investors/Authorised Participants): Creation unit size of 1,00,000 units or more.

Large investors and Authorised Participants can subscribe/redeem directly with the fund in ‘Creation Unit’ blocks of 1,00,000 units or more, with minimum transaction sizes over ₹25 crore. The ₹25 crore limitation is not applicable to EPFO, recognised Provident Fund and approved Gratuity & Superannuation Fund till August 31, 2025.

There is no exit load for this ETF. Further, special facilities are available during NFO like switch-in from eligible Nippon India Mutual Fund schemes, online/app transactions, etc. The dates for the NFO period are yet to be announced. The NFO will be kept open for subscription for a minimum of 3 working days and a maximum of 15 days.

This fund may be suitable for retail investors who want exposure to India’s manufacturing sector or institutional/large investors who want to invest in bulk. It is designed for those seeking passive exposure to India’s manufacturing sector. However, investors must read the details of the fund carefully before investing in it.