Publish Date:
Nippon India Mutual Fund has launched a new scheme - Nippon India Nifty Smallcap 250 Index Fund.
It is an open ended Index Fund that will track the Nifty Smallcap 250 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 Smallcap 250 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 at least 95% of its assets in Equity and Equity related securities of companies constituting the underlying index (Nifty Smallcap 250 Index). A very small portion (0% to 5% of its assets) may be kept in Money Market instruments, Reverse repo and / or Tri-Party Repo and/or Schemes which invest predominantly in the money market securities or Liquid Schemes.
Nippon India Nifty Smallcap 250 Index Fund is a passively managed scheme that would invest predominantly in stocks constituting the underlying index (Nifty Smallcap 250 Index) in the same proportion as in the Index and endeavor to track the benchmark index. The investment decisions will be determined as per the underlying index.
A very small portion (0-5% of the Net Assets) of the fund may be kept liquid to meet the liquidity and expense requirements.
The scheme, in general, will hold all of the securities that comprise the Underlying Index in the same proportion as the index. The Investment Manager would monitor the tracking error of the scheme on an ongoing basis and would seek to minimize tracking error to the maximum extent possible.
The scheme’s performance will be benchmarked against Nifty Smallcap 250 - TRI (Total Return Index).
It will be managed by Mr Mehul Dama.
The NFO opens for subscription on September 28, 2020 and closes on October 09, 2020. Scheme will re-open for continuous sale & repurchase not later than October 23, 2020.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Rs 1 thereafter.
The Units of the Scheme is proposed to be listed on National Stock Exchange of India Limited, and BSE Limited.