Navi Nifty 50 Index Fund AUM crosses ₹500 crore
The Nifty 50 index is a well-diversified 50 companies index reflecting overall market conditions. The index is computed using a free float market capitalization method.
Sachin Bansal backed-Navi Mutual Fund has announced that its Nifty 50 Index Fund, which was launched in July 2021, has crossed assets under management of ₹500 crore.
According to the fund house, the scheme’s AUM has grown five times in the 15 months since its launch. It had collected over ₹100 crore during its new fund offer (NFO) period last year last year.
The Nifty 50 index is a well-diversified 50 companies index reflecting overall market conditions. The index is computed using a free float market capitalization method.
The five top stocks in terms of weightage are Reliance Industries Ltd. (11.69%), HDFC Bank Ltd. (8.37%), ICICI Bank Ltd. (7.92%), Infosys Ltd. (7.02%) and HDFC Ltd (5.69%)
Notably, out of 17 Nifty 50 index funds in the country, only seven funds have crossed the ₹500 crore AUM mark.
Navi Nifty 50 Index Fund continues to offer an expense ratio of 0.06% under direct plan, which is the lowest in its category.
The fund’s tracking error (TE) is significantly lower than the category average in 2022. Navi Nifty 50 Index Fund has a TE of 0.04% as compared to the category average TE of 0.19%.
The fund boasts a diverse investor base of more than 75,000 existing investors.
Commenting on the fund crossing the ₹500 crore AUM mark, Sachin Bansal, co-founder of Navi Group, said, “We are delighted that Navi Nifty 50 index fund has become one of only seven Nifty 50 index funds in the country to cross the ₹500 crore AUM milestone. This was the first Navi fund we launched as part of our passive-first strategy, and we will continue to focus on offering our customers innovative, cost-effective and simple investment products."
Similar to US, passive funds in India have started gaining more popularity.
The cumulative three-month inflow in passive funds, that includes index funds and exchange traded funds (ETFs), stood at ₹42,278 crore as of August end, while active funds had net inflow of ₹30,515 crore during the same duration.
As per media reports, this is the first time since April 2021, the cumulative three-month rolling inflow of passive funds is higher than active funds.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!