Nippon Life India Mutual Fund launches passive flexicap FoF

Nippon Life India Mutual Fund has announced the launch of Nippon India Passive Flexicap FoF, an open-ended Fund of Funds scheme investing in units of ETFs/index funds of Nippon India Mutual Fund. The NFO opens on December 10 and closes on December 24. The minimum investment required is Rs 5,000 and in multiples of Re 1 thereafter.

Nippon India Passive Flexicap FoF will predominantly invest in units of ETFs/index funds of Nippon India Mutual Fund. The fund will be benchmarked against Nifty 500 TRI. According to the press release, Nippon India Passive Flexicap FoF would invest across market caps, basis average allocation of all active multicap funds in the industry into large, mid and small cap stocks as provided by CRISIL every month.

The investment objective of the scheme is to seek long term capital growth by investing in units of ETFs / Index Funds of Nippon India Mutual Fund. The Scheme follows a passive investment strategy and will predominantly invest in the following units of ETFs / Index Funds of Nippon India Mutual Fund:

1. Large Cap ETF/ Index Fund
2. Mid Cap ETF/ Index Fund
3. Small Cap ETF/ Index Fund

The underlying stocks of the above ETFs / Index Funds are mutually exclusive. Hence, the fund would have investments in 500 stocks.

“We are pleased to introduce this unique offering. As a firm, we are committed to bringing differentiated investment strategies for our investors. This fund would help investors participate in all parts of the markets by aggregating the market and industry wisdom at a low cost,”said Saugata Chatterjee, Co-Chief Business Officer, Nippon India Mutual Fund.