Nippon India Mutual Fund Launches Nippon India ETF 5 Year Gilt
   Mar 22, 2021

Nippon India Mutual Fund has launched an open-ended Gilt Exchange Traded Fund - Nippon India ETF 5 Year Gilt.

The scheme will be replicating/tracking Nifty 5 yr Benchmark G-Sec Index.

The investment objective of the scheme is to provide investment returns closely corresponding to the total returns of the securities as represented by the Nifty 5 Yr Benchmark G-Sec 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.

Nippon India ETF 5 Year Gilt is mandated to invest 95% to 100% of its net assets in Securities constituting Nifty 5 yr Benchmark G-Sec Index.

It can invest 0% to 5% of the net assets in Money Market instruments (Commercial Papers, Commercial Bills, treasury bills, a Treasury Bills, Government Securities – maturity upto one year, Certificate of Deposit, Tri-Party Repos, etc.).

Nippon India ETF 5 Year Gilt is a passively managed exchange traded fund which will employ an investment approach designed to track the performance of Nifty 5 Yr Benchmark G-Sec Index.

As per the Scheme Information Document, Nippon India ETF 5 Year Gilt seeks to achieve this goal by investing in securities constituting the Nifty 5 Yr Benchmark G-Sec Index in same proportion as in the 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.

The fund is ideal for those investors who would like to participate in Indian Bond Market by passively investing in a Government Securities as approximately represented by Nifty 5 Yr Benchmark G-Sec Index.

Nippon India ETF 5 Year Gilt’s performance will be benchmarked against Nifty 5 Yr Benchmark G-Sec Index.

The fund will be managed by Mr Vivek Sharma and Mr Siddharth Deb.

The NFO opens for subscription on March 22, 2021, and closes on March 26, 2021. The scheme will reopen for continuous sale and repurchase not later than April 13, 2021.

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The units of Nippon India ETF 5 Year Gilt shall be listed on the National Stock Exchange (NSE). The trading will be as per the normal settlement cycle.

The AMC reserves the right to list the units of the Scheme on any other recognized stock exchange. at later date, after required approval from respective stock exchange.

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