Navi Mutual Fund to launch lowest cost index fund

Navi Mutual Fund, owned by Flipkart co-founder Sachin Bansal, is set to launch a Nifty-tracking index fund that will cost the lowest in the segment to invest. The new entrant into the domestic mutual fund industry will charge an expense ratio of 0.06% for the index fund even as many established players more than doubled this annual fee.

The NFO will open on July 3 and close for subscriptions on July 12.

Currently, the Nifty fund operated by ICICI Prudential MF and Motilal Oswal MF that charges 0.1% as the expense ratio is the cheapest fund tracking the benchmark index.


Navi’s aggressive pricing comes at a time when as many as four fund houses have raised the expense ratio of their Nifty and Sensex passive funds.

HDFC MF raised the expense ratio of the Nifty and the Sensex fund direct plans from 10 bps to 20 bps. SBI MF and UTI MF have raised expense in the Nifty 50 fund from 9 bps to 16 bps and 10 bps to 19 bps respectively.