Publish Date:
Navi Fund has launched an open-ended equity index scheme - Navi Nifty Midcap 150 Index Fund.
The scheme will be replicating/tracking Nifty Midcap 150 Index.
The investment objective of the scheme is to achieve return equivalent to Nifty Midcap150 Index by investing in stocks of companies comprising Nifty Midcap 150 Index, subject to tracking error. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.
Navi Nifty Midcap 150 Index Fund is mandated to invest 95% to 100% of its total assets in Equity & Equity related securities covered by the Nifty Midcap 150 Index. The scheme may also hold 0% to 5% of its assets in Debt and Money Market Instruments.
As per the Scheme Information Document, Navi Nifty Midcap 150 Index Fund would invest in Equity and equity-related instruments, debt, money market instruments, and other permitted instruments, which will include but are not limited to:
Equity and Equity Related Instruments:
1. Equity Shares.
2. Equity-related instruments like…
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Convertible bonds and debentures, convertible preference shares, and warrants carrying the right to obtain equity shares.
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Derivative instruments like options and futures on equity securities/indices. 3. Listed debt or money market securities, in accordance with Seventh Schedule to the SEBI (Mutual Funds) Regulations
The investment objective of Navi Nifty Midcap 150 Index Fund is to achieve return equivalent to NiftyMidcap 150 Index by investing in stocks of companies comprising Nifty Midcap 150 Index, subject to tracking error. The Scheme endeavors to invest in stocks in proportion to the weightages of these stocks in the Nifty Midcap 150 Index.
Navi Nifty Midcap 150 Index Fund will, in general, invest a significant part of its corpus in equities; the surplus amount of the fund, not exceeding 5% shall be invested in Cash/Tri-Party Repo, Repo in corporate debt securities& Money Market instruments.
The performance of Navi Nifty Midcap 150 Index Fund may not be commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index. However, there is no assurance that all such buying and selling activities would necessarily result in benefit for the scheme. A small portion of the net assets will be held as cash or will be invested in debt and money market instruments permitted by SEBI/RBI including TREPS or in alternative investment for the TREPS as may be provided by the RBI, to meet the liquidity requirements under the Scheme.
Navi Nifty Midcap 150 Index Fund being an open-ended Scheme, it is expected that there would be a number of Subscriptions and Redemptions on a daily basis. The fund manager, depending upon the view and subject to trading opportunities, may trade in securities, which will lead to an increase in Portfolio Turnover.
Navi Nifty Midcap 150 Index Fund’s performance will be benchmarked against Nifty Midcap 150 Index TRI (Total Return Index).
The fund will be managed by Mr Pranav Vasa.
The NFO opens for subscription on February 21, 2022, and closes on March 02, 2022. The scheme will reopen for continuous sale and repurchase within five Business Days from the date of allotment.
The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having a Growth Option.