IDFC Mutual Fund has filed a draft SID for Nifty Mobility Index Fund – an open-ended passive scheme that will track the Nifty Mobility Index.
The NSE index developed the Nifty Mobility Index in December 2021. Its purpose is to track the performance of a portfolio of stocks that broadly represent the mobility theme. Stocks, which are part of Nifty 500 at the time of review, are eligible to be included in the index. In addition, the largest 30 stocks from eligible core industries are selected based on a 6-month average free-float market capitalization.
Some of the eligible core industries are airline, auto ancillary, battery (automobile), casting/forging, commercial vehicle, fastener, logistics service provider and passenger/utility vehicle.
The index is reconstituted semi-annually along with the Nifty broad-based indices.
According to the factsheet, the industry exposure of the index has been 70% in automobiles, 14.7 per cent in services, 10.4 per cent in oil and gas and 4.7 per cent in industrial manufacturing.
For a sectoral/thematic index, the weighting of any one stock in the index shall not exceed 35%. The weighting of the top three components of the index shall, cumulatively, not exceed 65% of the index. Individual components of the index will have a trading frequency greater than or equal to 80% and an average impact cost of 1% or less over the past six months.
The fund manager of the scheme is Nemish Sheth (Equity Portion)
The minimum amount for application during the NFO period as well as the ongoing offer is 5,000 for a lump sum, and 100 in case of SIP (Systematic Investment Plan), subject to a minimum of six installments.
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