Nippon India Mutual Fund Launches Nifty Bank Index Fund: All You Need to Know

Feb 07, 2024

Nippon Mutual Fund launches – Nippon India Nifty Bank Index Fund

It is an open-ended scheme replicating/tracking Nifty Bank Index.

Accordingly, investment objective of the scheme is to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty Bank Index before expenses, subject to tracking errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

However, there can be no assurance that the investment objective of the Scheme will be realized.

Under normal circumstances, Nippon India Nifty Bank Index Fund will hold an allocation of 95% to 100% in Securities constituting Nifty Bank Index and 0% to 5% in Cash & cash equivalents and Money Market instruments, Reverse repo and / or Tri-Party Repo on Government securities or Treasury bills and/or units of money market / liquid schemes.

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As per the Scheme Information Document, Nippon India Nifty Bank Index Fund is a passively managed index fund which will employ an investment approach designed to track the performance of Nifty Bank TRI. The Scheme seeks to achieve this goal by investing in securities constituting the Nifty Bank Index in same proportion as in the Index.

The fund manager does not make any judgments about the investment merit of Nifty Bank Index nor will it attempt to apply any economic, financial or market analysis.

This would be done by investing in almost all the stocks comprising the Nifty IT Index in approximately the same weightage that they represent in Nifty IT Index. The Scheme will invest at least 95% of its total assets in the securities comprising the Underlying Index. The Scheme may also invest in money market instruments to meet the liquidity and expense requirements.

Nippon India Nifty Bank Index Fund’s performance will be benchmarked against Nifty Bank TRI

The scheme will be managed by Mr Himanshu Mange.

The NFO opens for subscription on February 05, 2024 and closes on February 16, 2024. The schemes will reopen for continuous sale and repurchase on February 29, 2024.

The minimum subscription amount is Rs 1,000/- and in multiples of Re.1/- thereof.

The scheme offers Regular Plan and Direct Plan each plan offers Growth option and Income Distribution cum capital withdrawal Option (IDCW).