NFO Alert: Nippon India Mutual Fund launches Nippon India Nifty Manufacturing ETF

Nippon India Mutual Fund has announced the launch of Nippon India Nifty Manufacturing ETF, an open-ended scheme replicating/ tracking Nifty India Manufacturing Index.

The new fund offer or NFO of the fund is open for subscription and will close on August 20. The fund will reopen for continuous sale and repurchase on or before September 3.

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The investment objective of the scheme is to provide investment returns that are commensurate to the total returns of the securities as represented by the Nifty India Manufacturing Index before expenses, subject to tracking errors.

The performance of this passive fund will be benchmarked against Nifty India Manufacturing TRI and will be managed by Himanshu Mange.

Minimum application amount for the investment and additional purchase in the fund is of Rs 1,000 and in multiples of Re 1 thereafter. Redemptions can be of minimum amount of Rs 100 or any number of units or account balance, whichever is lower.

This passive fund will allocate 95-100% in securities constituting Nifty India Manufacturing Index and 0-5% in cash and cash equivalents and money market instruments.

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

The AMC does not make any judgments about the investment merit of Nifty India Manufacturing 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 India Manufacturing Index in approximately the same weightage that they represent in Nifty India Manufacturing Index

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This passive fund is suitable for investors who are seeking long term capital growth and want investments in equity and equity related securities and portfolio replicating the composition of the Nifty India Manufacturing Index, subject to tracking errors.

According to the riskometer of the fund, the principal invested in the fund will be at “very high” risk according to the riskometer of the fund.