Navi Mutual Fund on Monday announced the launch of Navi Nifty Next 50 Index Fund, an open-ended equity scheme that will replicate the Nifty Next 50 Index.
The fund has an expense ratio of 0.12% for the Direct scheme, which is the lowest as compared to any other similar schemes in the Passive Fund category.
The New Fund Offer (NFO) opened on January 1, 2022 and will close for subscription on January 15. Navi MF launched Navi Nifty 50 Index Fund in July last year 100 crore in your NFO.
Navi Nifty Next 50 Fund provides exposure to future Nifty 50 companies, 51 of the 75 stocks that have appeared in the Nifty 50 index over the past 19 years, 51 are from the Nifty Next 50 index, the company said. The Nifty Next 50 Index CAGR over 1-year, 5-year and 10-year investment horizons is 57.7%, 14.4% and 17.1% respectively, the company said in its statement. “Furthermore, investing in combination of Nifty Next 50 and Nifty 50 provides higher risk adjusted returns over the long term as compared to investing in Nifty 50 alone,” it said.
The fund provides investors with exposure to businesses that offer financial services beyond traditional banks, such as asset management, credit cards and general insurance, companies focused on a clean and renewable energy source, and businesses in the healthcare sector.
Commenting on the launch, a company spokesperson said that investors generally top-up their Nifty 50 Fund investments with Nifty Next 50 Fund to get a better blended large-cap portfolio and better than this fund. Can be expected to deliver risk-adjusted returns. Nifty 50 Fund alone.
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