NFO Watch: Navi Mutual Fund launches Nifty 500 Multicap 50:25:25 index fund

Navi Mutual Fund has launched Navi Nifty 500 Multicap 50:25:25 Index Fund, the first-ever index fund to track the Nifty 500 Multicap 50:25:25 index.

The new fund offer or NFO of the scheme is open for subscription and will close on July 30, 2024. The scheme will reopen for continuous sale and repurchase within five business days from date of allotment.

This fund continuously offers units at applicable NAV (Face Value: Rs 10). 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.


The investment objective of the scheme is to achieve return equivalent to Nifty 500 Multicap 50:25:25 Index by investing in stocks of companies comprising Nifty 500 Multicap 50:25:25 Index, subject to tracking error.

The scheme will be benchmarked against Nifty 500 Multicap 50:25:25 Index. The minimum application amount is Rs 10 and in multiples of Re 1 thereafter

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 scheme will invest 95-100% in equities and equity related securities covered by Nifty 500 Multicap 50:25:25 Index and 0-5% in debt and money market instruments.

"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 scheme is suitable for investors who are seeking long-term capital appreciation over long-time, want investment in equity and equity related securities covered by Nifty 500 Multicap 50:25:25 Index and want return that corresponds to the performance of Nifty 500 Multicap 50:25:25 Index, subject to tracking error.