New Delhi: Nippon Life India Asset Management Limited (NAM India), asset manager of Nippon India Mutual Fund (NIMF), announces the launch of Nippon India Nifty 500 Equal Weight Index Fund – An open-ended scheme replicating/tracking Nifty 500 Equal Weight Index^.
It is one-of-its-kind passive fund tracking Nifty 500 Equal Weight Index Fund. The Fund is a differentiated offering that seeks to provide investors with exposure to a diversified basket of 500 companies, with each stock having equal weight in the portfolio. This approach tends to mitigate concentration risk typically associated with market-capitalization-weighted indices and provides a unique opportunity to participate in the broader Indian market’s growth.
Investors looking to take advantage of India growth story should have exposure to a wider market including Large, mid- and small-cap companies which may drive the growth in the long run. Nifty 500 Equal Weight Index is well-diversified, with investments in 500 stocks spread across 21 sectors. The index would provide exposure to 20% in large cap stocks, 30% in mid caps and 50% in small cap stocks, a combination which is rare to find in other existing funds in the market.
The NFO opens on August 21, 2024, and closes on September 04, 2024. The minimum investment amount required during NFO is Rs 1000 and in multiples of Re 1 thereafter. The performance of the Scheme shall be benchmarked against Nifty 500 Equal Weight TRI.
Speaking at the launch, Sundeep Sikka, ED and CEO, Nippon India Mutual Fund said, “Building upon our strong track record in passive investments, we are excited to launch the ‘Nippon India Nifty 500 Equal Weight Index Fund’ a Smart-Beta strategy, which would adopt equal weighing approach in contrast to popular indices like Nifty 500, which use Market-cap weighting approach.”
A market leader in passive funds, Nippon India MF offers 43 passive schemes including ETFs, Index Funds and Fund of Fund. It has one of the largest ETF asset of ₹1.47 lakh crore and commands a market share of 18 per cent as of July-end. Nippon India ETF commands 59 per cent share of ETF folios in the industry and 61 per cent volume share on NSE and BSE.
Nippon Life India Asset Management Limited is one of the largest asset managers in India, managing (directly & indirectly) assets across mutual funds including Exchange Traded Funds, managed accounts, including portfolio management services, alternative investments funds, and offshore funds and advisory mandates.
