NEW DELHI, JULY 25, 2024: Navi Mutual Fund (“Navi MF”), a leading mutual fund investment company in India, today announced the launch of the Navi Nifty 500 Multicap 50:25:25 Index Fund, the first-ever index fund to track the Nifty 500 Multicap 50:25:25 index. This fund continuously offers units at applicable NAV (Face Value: ₹10/-). The New Fund Offer (NFO) opens on 18th July 2024 and closes on 30th July 2024.
The Nifty 500 Multicap 50:25:25 index offers investors a unique opportunity to gain diversified exposure across large, mid, and small-cap companies in the Indian stock market. This innovative index allocates a fixed weight of 50%, 25%, and 25% to large, mid, and small-cap segments respectively. Moreover, this strategic allocation helps mitigate risk by reducing concentration in any single market-cap category.
Compared to the Nifty 500 index, which has a large-cap allocation of around 71.8%, the Nifty 500 Multicap 50:25:25 provides significantly higher exposure to mid and small-cap companies (50% vs. 28.2%). This increased exposure offers investors the potential for higher growth prospects over the long term. Being an Index Fund, the expense ratio will be the lowest as 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.
“The Navi Nifty 500 Multicap 50:25:25 Index Fund offers a well-balanced investment opportunity for those looking to tap into the Indian market,” said a Navi Mutual Fund spokesperson. “With 50% allocated to large-cap companies for balanced allocation and the rest to mid and small-cap companies for potential growth, this fund mitigates the risk of individual stock selection or market timing, ensuring a balanced and strategic approach.”
The Navi Nifty 500 Multicap 50:25:25 Index Fund aims to generate returns corresponding to the performance of the Nifty 500 Multicap 50:25:25 index, subject to tracking error.