Navi Mutual Fund Launches India’s First Manufacturing Index Fund

Navi Mutual Fund (Formerly known as Essel Mutual Fund) has launched its 6th fund for the year 2022, the Navi Nifty India Manufacturing Index Fund which is India’s first open-ended manufacturing index fund.

The fund is an open-ended equity scheme replicating the Nifty India Manufacturing Index, which tracks the performance of manufacturers among the top 300 companies in India.

Key Points

• Navi Nifty India Manufacturing Index Fund aims to simplify investing in the Indian manufacturing sector.
• The fund proposes to have a total expense ratio (TER) of 0.15 percent for the direct plan and 1 percent for the regular plan and the fund will be managed by Aditya Mulki.
• The companies are selected from the combined universe of Nifty 100, Nifty Midcap 150 and Nifty Smallcap 50 index based on 6-month average free-float market.
• The index holds a minimum weight of 20 percent for certain manufacturing sectors.
• The weightage of each stock in the index is based on its free float market capitalisation which is reconstituted semi-annually along with Nifty Broad-based indices.
• The largest sectors in the Nifty India Manufacturing Index include automobile & auto components, capital goods, healthcare, and metals & mining.
• The top 10 stocks constitute around 37 percent of the index which includes Sun Pharma, Reliance Industries, Tata Steel, Maruti Suzuki India, Mahindra & Mahindra and JSW Steel.