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.

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