New Delhi: Navi Mutual Fund has announced the launch of Navi Nifty India Manufacturing Index Fund, its sixth fund for this year. It is India’s first open-ended index fund that will seek to replicate the Nifty India Manufacturing Index, which tracks the performance of manufacturers among the top 300 companies in India.
Navi Nifty India Manufacturing Index Fund aims to facilitate investment in the Indian manufacturing sector. The companies in the index are selected on the basis of 6-month average free-float market share from the combined universe of Nifty 100, Nifty Midcap 150 and Nifty Smallcap 50 indices. The weighting of each stock in the index is based on its free float market capitalization and is recalculated and rebalanced semi-annually with the Nifty broad-based index, according to a company statement.
The minimum weighting of the index for some manufacturing sectors is also 20%. The largest sectors in the Nifty India Manufacturing Index are currently Automobiles & Auto Components, Capital Goods, Healthcare and Metals & Mining. The top 10 stocks including Sun Pharma, Reliance Industries, Tata Steel, Maruti Suzuki India, Mahindra & Mahindra and JSW Steel account for about 37 per cent of the index.
Sachin Bansal, Co-Founder, Navi Group said, “The launch of Navi Nifty India Manufacturing Index Fund is yet another example of Navi’s focus on innovative, cost-effective and simple investment products. Manufacturing is an important part of the Indian economy and we are delighted to offer a product that allows our customers to play a part in that story.”
Navi Mutual Fund NFO opens on 12th August and closes on 23rd August. The fund proposes to have a Total Expense Ratio (TER) of 0.15% and 1% for Direct Plan and Regular Plan respectively. The fund will be managed by Aditya Mulki.
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