Mutual Fund News : Navi Mutual Fund Launches Navi Nifty Bank Index Fund

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Navi Mutual Fund has launched an open-ended equity index scheme - Navi Nifty Bank Index Fund.

The scheme will be replicating/tracking Nifty Bank Index.

The investment objective of Navi Nifty Bank Index Fund is to achieve return equivalent to Nifty Bank Index Index by investing in stocks of companies comprising Nifty Bank 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 Bank Index Fund is mandated to invest 95% to 100% of its total assets in Equity & Equity related securities covered by the Nifty Bank Index. The scheme may also hold 0% to 5% of its assets in Debt & Money Market instruments.

As per the Scheme Information Document, Navi Nifty Bank Index Fund endeavors to invest in stocks in proportion to the weightage of these stocks in the Nifty Bank Index. The 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 the Scheme 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 tracking errors.

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 Fund.

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 an alternative investment for the TREPS as may be provided by the RBI, to meet the liquidity requirements under the Scheme.

Navi Nifty Bank Index Fund’s performance will be benchmarked against Nifty Bank Index – TRI (Total Return Index).

The fund will be managed by Mr Pranav Vasa.

The NFO opens for subscription on January 17, 2022 and closes on January 31, 2022. The scheme will reopen for continuous sale and repurchase on February 07, 2022.

The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan only having Growth Option.