NFO Alert: Navi Mutual Fund launches Nifty 500 Multicap 50:25:25 Index Fund, what is the specialty of this scheme

NIFTY 500 MULTICAP 50:25:25 :Navi Mutual Fund, one of India’s leading mutual fund investment companies, has announced the launch of Navi Nifty 500 Multicap 50:25:25 Index Fund. This is the first index fund to track the Nifty 500 Multicap 50:25:25 Index. This fund offers units continuously at the applicable NAV (face value: Rs 10/-). This New Fund Offer (NFO) opens on July 18, 2024 and will close on July 30, 2024.

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Features of this new fund offer

● This NFO is opening on Thursday, July 18, 2024 and will close on Tuesday, July 30, 2024.

● India’s first index fund to track Nifty 500 Multicap 50:25:25 Index.

● This fund provides investors an opportunity to diversify their portfolio by investing in different market capitalizations.

● This New Fund Offer (NFO) is opening on 18th July 2024 and will close on 30th July 2024.

● Lowest expense ratio compared to active funds in the multicap category.

● A well-balanced investment option with investment amount starting from as low as Rs 10.

Diversified Portfolio

The Nifty 500 Multicap 50:25:25 Index offers investors a great opportunity to gain diversified exposure to largecap, midcap and smallcap companies in the Indian stock market. This innovative index allocates a fixed weightage of 50%, 25% and 25% to the largecap, midcap and smallcap segments. Moreover, this strategic allocation helps in reducing risk by reducing focus on any one market-cap category.

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Expense ratio is low

Compared to the Nifty 500 index, which has a large-cap allocation of around 71.8 per cent, the Nifty 500 Multicap 50:25:25 offers higher exposure to mid- and small-cap companies (50% vs 28.2%). This increased exposure provides investors with higher growth prospects in the long term. Being an index fund, the expense ratio will be the lowest compared to active funds in the multicap category. Unlike actively managed funds, the Navi Nifty 500 Multicap 50:25:25 Index Fund passively tracks the index.

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Who should invest

A spokesperson for Navi Mutual Fund said that Navi Nifty 500 Multicap 50:25:25 Index Fund offers a balanced investment opportunity for those who want to enter the Indian market. With 50 per cent allocated to large-cap companies for balanced allocation and the remaining amount allocated to mid-cap companies for potential higher growth, this fund minimizes the risk of stock selection or market timing, ensuring a balanced and strategic approach.

Navi Nifty 500 Multicap 50:25:25 Index Fund aims to provide returns corresponding to the performance of Nifty 500 Multicap 50:25:25 Index, subject to tracking error.

(Note: Past performance may or may not be maintained in the future. Therefore, one should seek advice from a financial advisor at his own level before investing.)