Navi Mutual Fund has launched another new index fund, Navi Nifty IT Index Fund, that replicates the Nifty IT Index.
The New Fund Offer (NFO) period for the Navi Nifty IT Index Fund is from March 3rd 2022, to March 14th 2022. The scheme re-opens for continuous repurchases and sale after five days from the date of allotment.
The fund’s investment objective is to offer investment returns that are closely correlated to the total returns of the stocks that are part of the Nifty IT Index before expenses, subject to tracking errors. However, the scheme does not assure or guarantee that the investment objective will be met.
|Navi Nifty IT Index Fund||Details|
|NFO Opening Date||March 3rd 2022|
|NFO Closing Date||March 14th 2022|
|Re-open Date||After five days from the date of allotment|
|Type of Fund||Open-ended equity scheme|
|Fund Manager||Mr Girish Raj|
|Minimum Investment Amount||INR 500 and in multiples of INR 1 thereafter|
|Minimum Additional Purchase Amount||INR 100 and multiples of INR 1 thereafter|
|Benchmark||Nifty IT Index TRI|
|Plans and Options||Regular Plan & Direct Plan|
- All the investment amounts should be multiple of INR 1/-
- Minimum SIP/SWP/STP for monthly frequency is INR 500/- and quarterly frequency is INR 1000/-.
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Mr Girish Raj
Mr Raj has more than 17 years of experience in portfolio management services and the broking industry. Before joining Navi Mutual Fund, he was associated with Quest Investment Advisors, IFCI Financial Services Ltd. (IFIN), Pranav Securities Pvt. Ltd., Independent Research Private Limited (IRPL) and Asian Techno Investments Pvt. Ltd. Currently, he manages three schemes at the fund house. Also, He is an MMS finance graduate with a B.Sc in statistics.
Navi Nifty IT Index Fund aims to closely replicate the benchmark index with minimum tracking error. The following is the indicative asset allocation of the fund.
|Types of Instruments||Indicative Allocation Minimum||Indicative Allocation Maximum||Risk Profile|
|Equity and Equity Related securities covered by Nifty IT Index||95%||100%||Medium to High|
|Debt and Money Market Instruments||0||5%||Low to Medium|
As per the SEBI Regulations, the scheme may participate in securities lending. The following are limits for stock lending –
- Not more than 20% of the net assets are deployed in stock lending.
- Not more than 5% of the net assets can be deployed in stock lending to any single approved intermediary.
The asset allocation is in the same proportion as the benchmark composition. The fund managers intend to maintain a low tracking error by actively managing the portfolio in line with the index.
Navi Nifty IT Index Fund replicates the Nifty IT Index performance. This fund primarily invests in the same stocks and proportions as the Nifty IT Index. Hence, it aims to closely track the benchmark’s return with minimum tracking error. Since the fund invests in technology stocks, it is a high-risk investment option. Investors should have a long term investment approach to avoid short term market volatility.
Investors who understand and can closely monitor the performance of the market IT stocks can consider investing in this scheme. Also, they should have an understanding of the risk towards this sector-specific fund. Furthermore, experts advise monitoring the investment in this fund as it does not guarantee returns. This helps investors to see their progress towards their financial goals.
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