Sachin Bansal-backed Navi Mutual Fund has announced that its Nifty 50 Index Fund, which was launched in July 2021, has crossed assets under management 500 crores.
According to the fund house, the AUM of the scheme has grown five times in the 15 months since its inception. it collected more 100 crores during its new fund offer (NFO) period last year.
Nifty 50 Index is a well-diversified index of 50 companies that reflects the overall market conditions. The index is calculated using a free float market capitalization method.
The top five stocks in terms of weightage are Reliance Industries Limited (11.69%), HDFC Bank Limited (8.37%), ICICI Bank Limited (7.92%), Infosys Limited (7.02%) and HDFC Limited (5.69%).
Notably, out of 17 Nifty 50 Index funds in the country, only seven funds have been able to cross 500 crore AUM mark.
Navi Nifty 50 Index Fund continues to offer an expense ratio of 0.06% under direct scheme, which is the lowest in its category.
The Fund’s Tracking Error (TE) is much lower than the category average in 2022. Navi Nifty 50 Index Fund has a TE of 0.04%, while the Category Average TE is 0.19%.
The fund has a diversified investor base of over 75,000 existing investors.
Commenting on Crossing Funds 500 crore AUM mark, Sachin Bansal, Co-Founder, Navi Group said, “We are delighted that Navi Nifty 50 Index Fund has become one of only seven Nifty 50 Index funds in the country. 500 crore AUM milestone. This was the first Navi Fund we launched as part of our passive-first strategy, and we will continue to focus on offering our clients innovative, cost-effective and simple investment products.”
Like the US, passive funds have started gaining more popularity in India too.
Cumulative three-month inflows in passive funds, including index funds and exchange-traded funds (ETFs), remained at 42,278 crore at the end of August, while the net inflow of active funds was 30,515 crore during the same period.
According to media reports, this is the first time since April 2021, when the cumulative three-month rolling flow of passive funds is higher than that of active funds.
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