Mutual Fund News : Navi Mutual Fund Launches Navi ELSS Tax Saver Nifty 50 Index Fund

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Navi Mutual Fund has launched – Navi ELSS Tax Saver Nifty 50 Index Fund

It is an open-ended passive equity linked saving scheme with a statutory lock in of 3 years and tax benefit replicating/tracking the Nifty 50 index.

Accordingly, the investment objective of the Scheme is to invest in companies whose securities are included in Nifty 50 Index (the Index) and to endeavour to achieve the returns of the index, though subject to tracking error. Investment in this scheme would be subject to statutory lock-in period of 3 years from the date of allotment to be eligible for income tax benefit under Section 80C. However, there is no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, Navi ELSS Tax Saver Nifty 50 Index Fund will hold an allocation of 95% to 100% of its assets in Equity and Equity Related Instruments covered by Nifty50 Index and 0% to 5% in Debt and Money Market Instruments.

As per the Scheme Information Document, Navi ELSS Tax Saver Nifty 50 Index Fund will adopt a passive investment strategy. The scheme will invest in stocks comprising the Nifty 50 Index in the same proportion as in the Index with the objective of achieving returns equivalent to the Total Returns Index of Nifty 50 Index by minimizing the performance difference between the benchmark index and the scheme.

The Scheme will invest in the securities constituting the underlying index. However, due to changes in Underlying Index the scheme may temporarily hold securities which are not part of the index. For instance, the portfolio may hold securities not included in the Underlying Index as result of certain changes in the Underlying Index such as reconstitution, addition, deletion etc. The fund manager’s endeavour would be to rebalance the portfolio in order to replicate the Index; however, there may be a short period where the constituents of the portfolio may differ from that of the Underlying Index.

Navi ELSS Tax Saver Nifty 50 Index Fund’s performance will be benchmarked against Nifty 50 TRI Index.

The scheme will be managed by Mr Aditya Mulki.

The NFO opens for subscription on February 14, 2023 and closes on February 28, 2023. The schemes will reopen for continuous sale and repurchase within five Business Days from the date of allotment.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500/- and in multiples of any amount thereafter. 

The scheme offers Regular Plan and Direct Plan each plan offers Growth and Income Distribution cum capital withdrawal option (IDCW) option.