Navi Mutual Fund has launched its Navi Nasdaq 100 Fund of Funds, an open-ended equity scheme that will invest in units of foreign ETFs/index funds based on the Nasdaq 100 Index. The fund will have a TER of 0.13% for the direct plan, which is the lowest in this category as per the fund house.
NFO will open on 3rd March 2022 and close on 17th March 2022. Investors can invest through online platforms like Grow, PaytmMoney, Zerodha Coin, IndMoney, Kotak Cherry, MF Utilities.
According to the press release, the Nasdaq 100 Index includes the 100 largest non-financial companies listed in the US. The NASDAQ 100 Total Return Index has generated compound annual growth rates of 18.93%, 32.59%, 27.59%, 26.12% in rupee terms, as on January 31, 2022, over 1 year, 3 years, 5 years and 10 years respectively. With a market cap of $18 trillion, the index has grown ~6x over the past 10 years.
The technology-heavy Nasdaq 100 index has outperformed more than 90% of all large-cap US funds in 1, 3, 5 and 10 years. It has even outperformed the S&P 500 in 11 of the past 13 years. The index also provides global exposure, as several non-US companies such as Baidu (China), Atlassian (Australia), ASML Holdings (Netherlands) etc also took part in February 2022, the release said.
According to the fund house, the Nasdaq 100 Index has historically had a low correlation with Indian indices, which provides high diversification benefits to Indian investors. If the dollar strengthens against the rupee, then investors can also get the benefit of better returns. The 20-year annualized return of the Nasdaq 100 (USD) from January 31, 2002 to January 31, 2022 was 12.93%, while the Nasdaq 100 (INR) returned 15.39%, as the dollar appreciated by 2.16 percent against the rupee as of January 31, 2022.
Sachin Bansal, Co-Founder, Navi Group, said: “I am excited to bring yet another international fund offering to Indian investors. The Navi Nasdaq 100 Fund of Funds offers clients a simple and affordable way to invest in the world’s leading technology companies.”
This is the fifth fund launched by Navi Mutual Fund this year. It launched Navi Nifty Next 50 Index Fund and Navi Nifty Bank Index Fund in January and Navi US Total Stock Market Fund of Fund and Navi Nifty Midcap 150 Index Fund in February. The fund house plans to launch two more funds by the end of April.
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