Publish Date:
Nippon India Mutual Fund has launched an open-ended equity index scheme - Nippon India Nifty Midcap 150 Index Fund.
The scheme will be replicating/tracking Nifty Midcap 150 Index.
The investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty Midcap 150 Index before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.
Nippon India Nifty Midcap 150 Index Fund is a passively managed index fund which will employ an investment approach designed to track the performance of Nifty Midcap 150 TRI. The Scheme seeks to achieve this goal by investing in securities constituting the Nifty Midcap 150 Index in same proportion as in the Index.
As per the Scheme Information Document, the AMC does not make any judgments about the investment merit of Nifty Midcap 150 Index nor will it attempt to apply any economic, financial or market analysis. This would be done by investing in almost all the stocks comprising the Nifty Midcap 150 Index in approximately the same weightage that they represent in Nifty Midcap 150 Index.
The Scheme will invest at least 95% of its total assets in the securities comprising the Underlying Index. The Scheme may also invest in money market instruments to meet the liquidity and expense requirements.
The fund is ideal for those investors who would like to participate in the India growth story by passively investing in a well-diversified portfolio of well known companies as approximately represented by Nifty Midcap 150 Index.
Nippon India Nifty Midcap 150 Index Fund’s performance will be benchmarked against Nifty Midcap 150 TRI (Total Return Index).
The fund will be managed by Mr Mehul Dama.
The NFO opens for subscription on February 04, 2021 and closes on February 12, 2021. The scheme will reopen for continuous sale and repurchase not later than February 26, 2021.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).