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Home >> Blog >> Navi Nifty 500 Multicap 50:25:25 Index Fund NFO: Review & Date

Navi Nifty 500 Multicap 50:25:25 Index Fund NFO: Review & Date

  


Introduction

Do you include yourself among those who want to invest in mutual Funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial step. So, this time, we've devised the business concept of the 'Navi Nifty 500 Multicap 50:25:25 Index Fund'.

This article will describe what is included in the Fund program and how it works.

Everything You Need To Know About Navi Nifty 500 Multicap 50:25:25 Index Fund - NFO

The Navi Nifty 500 Multicap 50:25:25 Index Fund by Navi Mutual Fund is an open-ended scheme replicating/tracking the Nifty 500 Multicap 50:25:25 index that was introduced on July 18, 2024. The investment window is open from July 18 to July 30, 2024, with a starting price of Rs.10 and in multiples of Rs.1 with no Exit Load.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

Navi Nifty 500 Multicap 50:25:25 Index Fund - NFO Overview

The scheme is suitable for investors who want to achieve capital appreciation over time and seeking to invest in equities and equity-related securities covered by the Nifty 500 Multicap 50:25:25 index. The return reflects the performance of the Nifty 500 Multicap 50:25:25 Index, subject to tracking errors. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest 95-100% of its units in Equities and equity-related securities covered by the Nifty 500 Multicap 50:25:25 Index, and 0-5% in Debt and money market instruments.

Fund Overview

The minimum subscription amount is set at Rs.10 and in multiples of Rs.1 thereof with a no Exit Load.

Start Date

18 July 2024

End Date

30 July 2024

Allotment Date / Subscription Date

Min period of 3 days but not more than 15 days after the closure date of the NFO.

VRO rating

-

Expense ratio

Nil

Exit load

0.50% if redeemed in 3 months

AUM 

6,319.27 crore

Lock-in

No Lockin

Stamp Duty

0.005% (From July 1st 2020)

Benchmark 

Nifty 500 Multicap 50:25:25 Index

Min. Investment

Rs.10

Risk

Very High

Short-term capital gains (STCG)

For less than 3 years, as per Tax Slab

Long-term capital gains (LTCG)

For more than 3 years, 20% is applicable.

 

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then 3 business days after the closure date of the NFO; you will have the option to participate and invest directly in the Mutual Fund by spending at the same price of Rs.10 and in multiples of Rs.1 thereof by logging on to your Demat account and search for “Navi Nifty 500 Multicap 50:25:25 Index Fund” on ‘Nifty 500 Multicap 50:25:25 Index’.

To Open Your Demat Account, Click Here.

The Objective Of The Fund

The Scheme intends to Invest in equities of companies that make up the Nifty 500 Multicap 50:25:25 Index to earn a return similar to the index, subject to tracking error. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments

Minimum Allocation (% of Net Assets)

Maximum Allocation (% of Net Assets)

Equities and equity-related securities covered by the Nifty 500 Multicap 50:25:25 Index

95

100

Debt & Money Market Instruments

0

5

 

 

Peers Of Navi Nifty 500 Multicap 50:25:25 Index Fund

Scheme

1Y Return

AUM (Cr)

Tata Nifty500 Multicap India Manufacturing 50:30:20 Index

72.54%

100.68 

Since this scheme is a new scheme, hence no comparable data of its performance with its peers is available.

Risk Factors In Such Funds

  • Equity and equity-related instruments are inherently volatile, with daily price changes caused by macroeconomic and microeconomic factors. The value of equity and equity-related instruments may fluctuate due to factors affecting the securities markets such as price volatility, volume traded, interest rates, currency exchange rates, changes in government laws/policies, etc, which may harm individual securities, a specific sector, or all sectors. As a result, the NAV of Units issued under the Scheme may be lowered.

  • Investments in fixed-income instruments include reinvestment risk, as interest rates existing on coupon payout or maturity dates can vary from the bond's initial coupon.

  • The liquidity and valuation of the Scheme investments may be influenced by their holdings of unlisted securities if they must be sold before their target date of disposal..

  • The liquidity of a bond can alter based on market conditions, resulting in fluctuations in the liquidity premium connected to the bond's price. When selling a security, it may become illiquid, resulting in a decrease in the portfolio's value.

  • The Scheme isn't actively administered. Because the Scheme is tied to an index, it could be impacted by a general drop in the Indian markets connected to the underlying index.

Past Performance Of Index / Debt Funds

Index / Debt Funds

NAV (Rs)

Annualized Return (1Y)

Return/Risk

Edelweiss Nifty Smallcap 250 Index Fund - Direct Plan-Growth

17.66

64.78%

Very High Risk

Nippon India Nifty Smallcap 250 Index Fund - Direct Plan-Growth

33.896

63.96%

Very High Risk

SBI Nifty Smallcap 250 Index Fund - Direct Plan-Growth

18.58

64.37%

Very High Risk

 

Navi Nifty 500 Multicap 50:25:25 Index Fund NFO - Who Can Invest?

This Fund is ideal for those who want to tolerate a high-risk scheme, achieve capital appreciation over time, and seek to invest in equities and equity-related securities covered by the Nifty 500 Multicap 50:25:25 index.

Navi Nifty 500 Multicap 50:25:25 Index Fund NFO - Growth Fund Managers:

  • Mr. Aditya Mulki

  • Mr. Ashutosh Shirwaikar

Conclusion

For investors looking to diversify their portfolios through investments in the Those who desire to attain capital appreciation over time and seek to invest in equities and equity-related instruments covered by the Nifty 500 Multicap 50:25:25 index. The goal of this NFO is to earn a return similar to the index, subject to tracking error by investing in equities of companies that make up the Nifty 500 Multicap 50:25:25 Index. Always assess your Financial Goals, Risk tolerance, time horizon, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.

 



Frequently Asked Questions

+

The IPO will begin accepting subscriptions on July 23, 2024.

 

+

The issue price of the IPO is Rs.39 to Rs.42 for each Share.

+

  The IPO's total issue size is 4,410,000 Shares (amounting to Rs.18.52 Cr).

+

The IPO closing date is July 25, 2024

+

The money from the IPO is to be used to fund the company's working capital and fulfill General business objectives.



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