Mutual Fund News : Nippon India Mutual Fund Introduces Nippon India Flexi Cap Fund

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Nippon India Mutual Fund (MF) has launched an open ended equity scheme - Nippon India Flexi Cap Fund.

It is an open-ended dynamic equity scheme investing across large cap, mid cap & small cap stocks.

Accordingly, the investment objective of the scheme is to seek to generate capital appreciation & provide long-term growth opportunities by investing in a portfolio constituted of equity securities & equity related securities and the secondary objective is to generate consistent returns by investing in debt and money market securities.

Nippon India Flexi Cap Fund will have the flexibility to invest in a broad range of companies with an objective to maximize the returns, at the same time trying to minimize the risk by reasonable diversification. However, there can be no assurance that the investment objective of the scheme will be realized, as actual market movements may be at variance with anticipated trends.

Under normal circumstances, 65% to 100% of the funds portfolio will be invested in equity & equity related instruments of largecap, midcap and smallcap companies. The scheme may also invest upto 35% of its assets in Debt and Money market instruments.

The investment strategy of Nippon India Flexi Cap Fund as mentioned in the Scheme Information Document (SID) is as follows:

To achieve the investment objective, Nippon India Flexi Cap Fund will invest in equity & equity related instruments and debt & money market instruments as permitted by SEBI/ RBI from time to time.

The Scheme seeks to provide long term wealth creation by dynamically managing the investments across large, mid and small cap stocks.

For investments in equity and equity related securities, Nippon India Flexi Cap Fund would identify companies for investment, based on the following criteria amongst others:

  • Sound Management

  • Good track record of the company

  • Potential for future growth

  • Industry economic scenario.

Nippon India Flexi Cap Fund’s performance will be benchmarked against NIFTY 500 TRI (Total Return Index).

Nippon India Flexi Cap Fund will be managed by Mr Manish Gunwani, Mr Dhrumil Shah, Mr Varun Goenka, Mr Nikhil Rungta and Ms. Kinjal Desai.

The NFO opens for subscription on July 26, 2021, and closes on August 09, 2021. The scheme will reopen for continuous sale and repurchase not later than August 24, 2021.

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 Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Income Distribution cum Capital Withdrawal Option (Re-investment and Pay-out facility).