Nippon India Mutual Fund on Monday, February 5, launched two new fund offers (NFOs), namely the Nippon India Nifty IT Index Fund and Nippon India Nifty Bank Index Fund. Both funds are available for subscription until February 16, 2024, providing investors with a limited timeframe to explore these investment opportunities.
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Nippon India Nifty IT Index Fund
This fund aims to deliver investment returns in line with the total returns of the Nifty IT Index's securities before expenses, though it's important to note that there is no guaranteed assurance for achieving the investment objective.
The scheme allows for sale, switch-in, and redemption on every working day.
The benchmark for performance evaluation is the Nifty IT TRI.
There are no entry or exit loads, and the asset allocation primarily includes Nifty IT Index securities (95-100%) and 0-5% in cash, equivalents, money market instruments, and more.
Regarding fees and expenses, there is no entry load, and the exit load is nil.
The expense ratio will be updated by the asset management company (AMC) on its website at least three working days before any change, Nippon India Mutual Fund said.
Investors have the flexibility to switch between schemes based on their changing investment needs.
A look at returns of some of the peer funds:
| Fund Name | 6-month return |
|---|---|
| Axis Nifty IT Index Fund - Regular Plan | 24.66% |
| Nippon India ETF Nifty IT | 25.26% |
| ICICI Prudential Nifty IT ETF | 25.29% |
(Source: Value Research)
Nippon India Nifty Bank Index Fund
Similar to its IT counterpart, this fund aims to provide investment returns aligned with the total returns of the Nifty Bank Index's securities before expenses.
The scheme's liquidity is provided through sale, switch-in, and redemption on every working day.
The benchmark for performance evaluation is the Nifty Bank TRI. There are no entry or exit loads, and the asset allocation primarily includes Nifty Bank Index securities (95-100%) and 0-5% in cash, equivalents, money market instruments, and more.
In terms of fees and expenses, there is no entry load, and the exit load is nil.
A look at returns of some of the peer funds:
| Fund Name | 1-year return |
|---|---|
| Motilal Oswal Nifty Bank Index Fund - Regular Plan | 12.85% |
| Navi Nifty Bank Index Fund - Regular Plan | 12.69% |
| Nippon India ETF Nifty Bank BeES | 13.84% |
| Kotak Nifty Bank ETF | 13.75% |
| SBI Nifty Bank ETF | 13.81% |
(Source: Value Research)
Should one invest?
Both Nippon India Nifty IT Index Fund and Nippon India Nifty Bank Index Fund offer investors the potential for diversified returns.
However, it's crucial for investors to conduct thorough research, considering the inherent risks involved.
The absence of entry and exit loads, coupled with the flexibility to switch between schemes, adds to the attractiveness of these offerings.
Interested investors should, however, explore further details and consult financial advisors before making investment decisions.
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