Navi Mutual Fund launches Navi Nifty Bank Index Fund
Navi Mutual Fund has launched Navi Nifty Bank Index Fund. It is an open-ended equity scheme that will replicate the Nifty Bank Index. Some of the top constituents of Nifty Bank Index are HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank and Axis Bank.
NFO opens on : 17th January, 2022
NFO closes on: 31st January, 2022
Type/ Plan
An open-ended scheme /Growth Plan
Benchmark :
Nifty Bank TRI
Investment Strategy
The scheme seeks to achieve return equivalent to Nifty Bank Index Index by investing in stocks of companies comprising Nifty Bank Index, subject to tracking error.
Investment Frame work
Navi Mutual Fund has launched Navi Nifty Bank Index Fund. It is an open-ended equity scheme that will replicate the Nifty Bank Index. Some of the top constituents of Nifty Bank Index are HDFC Bank, ICICI Bank, State Bank of India, Kotak Mahindra Bank and Axis Bank.
Navi MF believes this index fund offers investors a “cost-effective way” to invest in the most liquid and large banking stocks of the country. The scheme comes with an expense ratio of 0.12% for the direct plan.
MINIMUM INVESTMENT AMOUNT DURING NFO:
Rs. 500/-and in multiples of Rs. 1/-thereafter
Lock In Period : Not Application
Exit Load : 0
Investment Horizon
Recommended Investment Horizon 3+ Years
Fund Manager
Pranav Vasa
Education : Mr. Vasa is a PGDM Finance and B.E. (Computer)
Experience: Prior to joining Navi Mutual Fund, he has worked with Aditya Birla Sun Life Insurance Company.
Funds Managed:
Navi Nifty 50 Index Fund – Regular Plan – since Sep 2021
Navi Nifty Next 50 Index Fund – Regular Plan – since Jan 2022
AMC:
Navi AMC Limited
Address: Peerless Mansion, 3rd Floor, 1 Chowringhee Square, Kolkata – 700069
Email: mutualfund@esselfinance.com
Website: http://www.navimutualfund.com
About Navi Mutual Fund:
Sachin Bansal backed Navi Technologies plans on making financial services simple, transparent and accessible to all. It has taken its technology-driven and customer-centric approach to make investing low cost and simple. Navi also offers a range of financial services and products such as Personal Loans, Housing Loans, Two Wheeler Loans, SME Business Loans and General Insurance.
The personal loan arm of Navi became one of the largest lenders in the country in just 3 months of its launch, while the insurance arm guarantees cashless claim approvals at breakneck speed of under 20mins! With Navi, speed and innovation are just around the corner.
Chanakya’s Guidance:
Nifty Bank Index offers exposure to 12 stocks from the banking sector including 10 private and 2 PSU banks which capture 88% of the market capitalization of all the listed banks.
Nifty Bank Index 10-year CAGR : The Nifty Bank Index has achieved attractive returns over the long term. Its 1 year, 5 year and 10 year CAGR are 14%, 12.5% and 16.9% respectively.
The Nifty Bank Index underperformed in the broader market since the start of the Covid outbreak in early 2020, with healthy balance sheets of banks and corporates, the sector is expected to capture cyclical uptick in growth.
The Nifty Bank TRI has also outperformed the Nifty 50 TRI in 6 out of the last 10 years till FY21.
Top Nifty Bank Index constituents : As of December 31, 2021, the top 5 constituents of the Nifty Bank Index were HDFC Bank Ltd (27.8%), ICICI Bank Ltd (22.62%), Kotak Mahindra Bank Ltd (11.61%), Axis Bank Ltd (11.52%) & State Bank of India (11.45%).
India’s aim to become a US$ 5 trillion economy will be driven by significant expansion and growth in our banking sector over the next few years. This sector is clearly poised for growth and Navi’s Nifty Bank Index Fund provides an opportunity for investors to participate in this growth journey .
ChanakyaMFGuidance strongly suggest to invest in this NFO of with Investment Horizon of 3 to 5 years.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.