Nippon India Mutual Fund had average assets under management of Rs 5,49,174 crores during the period July-September 2024 and nearly 2.88 crore folios as on September 30, 2024. The AMC (asset management company) has launched two index funds on November 14. The NFO (new fund offer) will close on November 28, 2024. The funds are Nippon India Nifty Auto Index Fund and Nippon India Nifty Realty Index Fund.
As is evident from their names, the two funds address completely different sectors. They will be different in many aspects, though qualitatively both are index funds, the demand for which is steadily rising in India. Let’s see the features of these 2 mutual fund schemes.
Nippon India Nifty Auto Index Fund
If you are bullish about the prospects of the Indian automobile industry, you can have a close look at this fund. The proposed Nippon India Nifty Auto Index Fund will function as an open-ended scheme. It will track the Nifty Auto Index. As is the characteristic of any index fund, it will act as a portfolio diversifier through a single investment since it will provide investment returns that will mirror the returns of the securities represented by the Nifty Auto Index.
As mentioned by the company, the fund will deploy 95-100% of the resources in securities of the Nifty Auto Index and could keep 0-5% in cash and cash equivalents/money market instruments. The allotment of the fund will take place on December 10. It has no entry or exit load.
Nippon India Nifty Realty Index Fund
Like the auto index fund, the Nippon India Nifty Realty Index Fund, too, is an open-ended scheme which will track the Nifty Realty Index. The investment objective: offering returns that are commensurate to the total returns of the stocks in the Nifty Realty Index. The Nifty Realty TRI will be the benchmark for this scheme. It will deploy 95-100% money in securities of the Nifty Realty Index and the rest in cash/cash equivalents/money market instruments.
(Disclaimer: This article is only meant to provide information. News9live.com does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
One of the most popular AMCs of the country, Nippon India has launched a couple of index funds – Nippon India Nifty Auto Index Fund and Nippon India Nifty Realty Index Fund. The NFOs will close on November 28, 2024. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
