Navi Mutual Fund has introduced its latest offering – the Navi Nifty IT Index Fund. This open-ended index scheme is designed to replicate and track the performance of the Nifty IT Index. The New Fund Offer (NFO) is currently open for subscription and will remain so until March 22, 2024.
Investors keen on diving into the tech-driven market can participate in the scheme, which will subsequently reopen for subscription and repurchase within five business days from the date of allotment.
The scheme will be managed by Aditya Mulki and Ashutosh Shirwaikar, benchmarked against the Nifty IT Index TRI.
The primary goal of the scheme is to achieve returns equivalent to the Nifty IT Index by investing in the stocks of companies comprising the Nifty IT Index, subject to tracking error.
In terms of investment guidelines, the fund will allocate 95-100% in equities and equity-related securities covered by the Nifty IT Index, with a small 0-5% allocation in debt and money market instruments.
The financial details of the
NFO reveal a minimum investment requirement of just ₹10, with subsequent multiples of ₹1.
The Total Expense Ratio (TER) for this fund is 0.22% for the direct plan, and no exit load is applicable.
Redemptions will follow the First in First out Basis (FIFO), the
mutual fund house said.
With a minimum investment of just ₹10, this fund opens the door for both novice and seasoned investors to capitalise on the potential growth in the dynamic IT sector.
Investors should note that while the investment objective is to mirror the Nifty IT Index, there is no assurance or guarantee of achieving this objective.
The scheme is considered suitable for investors seeking capital appreciation over the long term and those interested in equity and equity-related securities covered by the Nifty IT Index.
However, it comes with a "very high" risk, as indicated by the riskometer.
