Publish Date:
Nippon India Mutual Fund has launched a new scheme - Nippon India Nifty Pharma ETF.
It is an open ended Exchange Traded Fund that will track the NIFTY Pharma Index.
Accordingly, 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 Pharma 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.
Under normal circumstances the scheme will invest 95% to 100% of its assets in Securities constituting NIFTY Pharma Index. A very small portion (0% to 5% of its assets) may be kept in Money Market Instruments including Tri-Party Repo on Government securities or Treasury bills, cash & cash equivalents or Liquid Schemes (of Nippon India Mutual Fund and other schemes of a mutual fund registered with SEBI, that invest predominantly in the money market securities).
As per the scheme information document, Nippon India Nifty Pharma ETF is a passively managed exchange traded fund which will employ an investment approach designed to track the performance of NIFTY Pharma TRI.
The Scheme seeks to achieve this goal by investing in securities constituting the NIFTY Pharma Index in same proportion as in the 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.
Nippon India Nifty Pharma ETF 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 represented by NIFTY Pharma Index.
Nippon India Nifty Pharma ETF’s performance will be benchmarked against NIFTY Pharma Index - TRI (Total Return Index). The scheme will be managed by Mr Mehul Dama.
The NFO opens for subscription on June 21, 2021, and closes on June 28, 2021. The scheme will reopen for continuous Subscription and Redemption on or before July 12, 2021.
It offers Units of Rs. 10/- each for cash (on allotment, the value of each Unit would approximately equal to 1/1000th of the value of Nifty Pharma Index) to be issued at a premium, if any, approximately equal to the difference between face value and allotment price during the New Fund Offer (“NFO”) and at NAV based prices during the Ongoing Offer.
The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.
The units of Nippon India Nifty Pharma ETF shall be listed on National Stock Exchange of India Ltd (NSE). The trading will be as per the normal settlement cycle. The AMC reserves the right to list the units of the Scheme on any other recognized stock exchange at later date, after obtaining required approval from respective stock exchange.
All investors including Authorized Participants, Large Investors and other investors may sell their units on the stock exchange(s) on which these units are listed on all the trading days of the stock exchange. Alternatively Authorized Participant and Large Investors can directly buy/sell in blocks from the fund in ‘Creation Unit’ Size.