Navi MF launches Nifty Next 50 Index Fund with lowest ER within the class

Navi Mutual Fund on Monday introduced the launch of Navi Nifty Next 50 Index Fund, which is an open-ended fairness scheme that may replicate the Nifty Next 50 Index. 

The fund has an expense ratio of 0.12% for its direct plan, which is the bottom in comparison with every other related schemes within the passive funds class as of date.

The New Fund Offer (NFO) opened on 1 January 2022 and can shut for subscriptions on 15 January. Navi MF had launched Navi Nifty 50 Index Fund in July final 12 months that had collected over ₹100 crore in its NFO.

The firm mentioned Navi Nifty Next 50 Fund presents publicity to the Nifty 50 corporations of the longer term, including that out of the 75 shares that graduated to the Nifty 50 Index within the final 19 years, 51 have been from the Nifty Next 50 Index. The Nifty Next 50 index CAGR over 1-year, 5-year and 10-year funding horizon stands at are 57.7%, 14.4% and 17.1%, respectively, the corporate mentioned in its assertion. “Moreover, investing in a combination of Nifty Next 50 & Nifty 50 offers a higher risk adjusted return than investing in Nifty 50 alone, over the long term,” it mentioned

The fund presents buyers publicity to companies providing monetary providers past conventional banks, similar to asset administration, bank card and basic insurance coverage, corporations centered on a cleaner and renewable vitality supply and companies within the healthcare sector.

Commenting on the launch, an organization spokesperson mentioned buyers sometimes top-up their Nifty 50 fund investments with Nifty Next 50 funds to realize a better-blended large-cap portfolio and this fund might be anticipated to ship higher risk-adjusted returns in comparison with the Nifty 50 fund alone.

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