Publish Date:
Navi Mutual Fund introduces – Navi Nifty 50 ETF
It is an open-ended exchange traded fund replicating/tracking NIFTY 50 index
Accordingly, the investment objective of the scheme is to provide returns before expenses that correspond to the total return of the underlying index subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.
Under normal circumstances, Navi Nifty 50 ETF will hold an allocation of 95% to 100% of its assets in Securities covered by Nifty 50 and 0% to 5% in Money Market Instruments including TREPs.
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As per the Scheme Information Document, Navi Nifty 50 ETF will be managed passively with investments in stocks in a proportion to the weightages of these stocks in the respective Index.
The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index as well as the incremental collections / redemptions in the Scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.
Navi Nifty 50 ETF performance will be benchmarked against Nifty 50 Index TRI
The scheme will be managed by Mr Aditya Mulki and Mr Ashutosh Shirwaikar.
The NFO opens for subscription on September 11, 2023 and closes on September 15, 2023. The schemes will reopen for continuous sale and repurchase within 5 business days from date of allotment.
The scheme offers units of Rs. 10 each, issued at a premium approximately equal to the difference between face value and allotment price during the new fund offer and at intraday NAV based prices on an on-going basis. The minimum subscription amount is Rs. 250 and in multiples of Re.1.
Presently the Scheme does not offer any Plans/Options for investment.