NAVIAMC - NAVINIFTY ETF

About Navi Nifty 50 ETF

• Navi Nifty 50 ETF is an open-ended passively managed scheme offered by Navi Mutual Fund House.
• The ETF primarily invests in big companies from different key sectors of the Indian economy.
• Traded with the symbol NAVINIFTY on NSE, the ETF was launched on September 18, 2023.
• The scheme is managed by Aditya Mulki and Ashutosh Sirwaikar.
• As of June 30, 2024, the assets under management for this ETF stood at ₹7 crore.
• The ETF units can be bought and sold during the usual market hours at the prevailing prices.
• Retail investors can invest in the scheme by directly buying the ETF units through a demat account with a registered broker.

Investment Objective & Benchmark

• Navi Nifty 50 ETF aims to offer returns before expenses that replicate the total return of equity stocks part of the underlying index, subject to minor tracking errors.
• The scheme is benchmarked against the Nifty 50 index which is a well-diversified 50-stock index and it represents important sectors of the economy.
• Navi Nifty 50 ETF invests in large companies, which generally experience less volatility compared to funds that invest in smaller companies.
• It is a very high-risk investment instrument, suited for the long-term goal of wealth creation.
• The ETF offers diversification of funds in companies from different business domains, protecting investors from sectoral risks.
• Being passively managed, it replicates the portfolio of its chosen benchmark index without trying to beat it.
• The ETF is a cost-effective method of investing in top companies of the Indian economy without having to buy individual stocks.

Asset Allocation & Portfolio Composition

• Navi Nifty 50 ETF's asset allocation primarily comprises 98.64% in equity, with the remaining 1.36% allocated to cash and cash equivalents.
• It is mandated to invest at least 80% of its assets in large-cap stocks at all times.

Sectorwise allocation of the ETF’s asset allocation:

• Financial Sector - 34.04%
• Technology - 15.84%
• Energy and Utilities - 14.51%
• Consumer Discretionary - 9.27%
• Materials - 8.30%
• Consumer Staples - 7.66%
• Industrials - 4.92%
• Healthcare - 4.10%

The top 10 company holdings make up 52.88% of the ETF's asset allocation as of June 30, 2024. Here's a list of 10 company holdings in the ETF:

• HDFC Bank: 11.01%
• Reliance Ind: 9.21%
• ICICI Bank: 7.73%
• Infosys: 6.10%
• ITC: 4.14%
• Larsen & Toubro: 4.03%
• TCS: 4.02%
• Bharti Airtel: 3.61%
• Axis Bank: 3.03%
• SBI: 3%

Since its inception, Navi Nifty 50 ETF has given an annualised return of 23.86% to its investors.

In the last one year, the ETF has delivered a return of 23.60% compared to its benchmarked index’s 24.68% yield as of July 31.