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Nippon India Nifty 500 Equal Weight Index Fund NFO: Review, Date & Nav

  


Nippon India Nifty 500 Equal Weight Index Fund: Complete Overview

If you're an established participant or new to the world of New Fund Offer, you've come to the right place to learn about the latest trends, insights, and news of NFO Mutual Fund. Here at the Nippon India Nifty 500 Equal Weight Index Fund NFO Blog, we're dedicated to providing you with useful information on this new NFO, including financial characteristics and any prior performance.

“Nippon India Nifty 500 Equal Weight Index Fund” launched by Nippon India Mutual Fund is an open-ended scheme that tracks and replicates the Nifty 500 Equal Weight Index under Nippon AMC. The NFO date is from August 21 to September 04, 2024, with an NFO price of Rs.1000 and in multiples of Rs.1 thereafter.

 

 

Nippon India Nifty 500 Equal Weight Index Fund NFO Details

The scheme is suitable for investors who want to achieve long-term wealth gain and seek to invest in equities and equity-related securities and portfolios that replicate the composition of the Nifty 500 Equal Weight 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 Securities comprising the Nifty 500 Equal Weight Index and 0-5% in Cash and its equivalents, money market instruments, and/or schemes that invest in liquid schemes or money market securities.

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Fund Overview

The Nippon India Nifty 500 Equal Weight Index Fund NFO minimum subscription amount is Rs.1000 and in multiples of Rs.1 thereof.

Start Date

21 August 2024

End Date

04 September 2024

Allotment Date/Subscription Date/Re-open Date

16 September 2024

VRO Rating

-

Expense Ratio

Nil

Exit Load

Nil

AUM 

Rs.516,267.80 crore (as of 30 Jun 2024).

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark(s)

Nifty 500 Equal Weight TRI.

Min. Investment

Rs.1000 and in multiple of Rs.1.

Risk

Very High

Short-Term Capital Gains (STCG)

For less than 2 years, as per Tax Slab.

Long-Term Capital Gains (LTCG)

For more than 2 years, a 12.50% Tax 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 on 16 September 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Nippon India Nifty 500 Equal Weight Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

 

 

The Objective of The Fund

The Scheme aims to generate returns, subject to tracking mistakes, that are proportionate to the overall returns of the securities as measured by the Nifty 500 Equal Weight Index before expenses. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

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

 

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Securities comprising the Nifty 500 Equal Weight Index.

95

100

Cash and its equivalents, money market instruments, and/or schemes that invest in liquid schemes or money market securities.

0

5

 

Peers of Nippon India Nifty 500 Equal Weight Index Fund

Scheme

1Y Return

AUM (Rs.)

UTI Nifty 500 Value 50 Index Fund

82.38%

468.41 Cr.

Motilal Oswal Nifty 500 Index Fund

38.17%

1990.87 Cr.

Motilal Oswal S&P 500 Index

29.05%

3438.82 Cr.

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

  • As an index scheme, the Scheme uses a passive investment strategy and will only make investments in securities that make up a single, chosen index by the Scheme's investment goal.

  • Every index fund has tracking error, which can lead to schemes producing returns that are out of line with the Nifty 500 Equal Weight Index's performance.

  • The scheme's success will be directly impacted by the Nifty 500 Equal Weight Index's performance. Therefore, any modification in composition due to weighting or stock selection will affect the scheme.

  • Nippon India Nifty 500 Equal Weight Index Fund is a type of passively managed index scheme. Funds are invested in equities of companies that make up the underlying index at the same weights as they do in the underlying index. The underlying index's composition is subject to periodic modifications that could be made by the index service provider.

Past Performance of Index Funds

Index Funds

NAV (Rs.)

Annualised Return

Return / Risk

Motilal Oswal Nifty 500 Index Fund - Direct Plan

26.94

39.20%

Very High Risk

UTI Nifty 500 Value 50 Index Fund

20.79

82.38%

Very High Risk

 

Nippon India Nifty 500 Equal Weight Index Fund NFO-Who Can Invest?

This Fund is ideal for those who want to achieve long-term capital gain and seek to invest in equities and equity-related securities and portfolios that replicate the composition of the Nifty 500 Equal Weight Index, subject to tracking errors. 

Nippon India Nifty 500 Equal Weight Index Fund-Growth Fund Managers:

  • Mr. Himanshu Mange.

Conclusion

The Nippon India Nifty 500 Equal Weight Index Fund is appropriate for investors who are high risk-tolerant and aiming for capital maturity over a long horizon by investing in portfolios that replicate the composition of the Nifty 500 Equal Weight Index and equity-related instruments. Always assess your Financial Goals, Risk tolerance, time horizons, 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 opening date of the Scheme is 21 August 2024.

+

The closing date of the Scheme is 04 September 2024

 

+

NAV expands as Net Assets Value.

+

The Scheme's Fund Manager is Mr. Himanshu Mange.

+

The minimum investment for the Scheme is Rs.1000 and in multiple of Rs.1 thereafter.

 



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