Navi Nifty 50 Index Fund

The Nifty 50 index, which is a weighted portfolio of the 50 biggest Indian stocks, is tracked by a mutual fund scheme.

This offering is suited for investors looking for:

• Growth in the capital throughout the long run.
• Investing in an actively managed portfolio that is mostly made up of equities and securities related to equity, spread across a variety of industries and large-cap firms.
• If unsure whether a product is right for them, investors should speak with their financial advisors.

Outlines and Benchmark.

By investing in the equities of the firms that make up the Nifty 50 Index, the investment goal of the program is to generate a return similar to the Nifty 50 Index.

The achievement of the Scheme’s investment goal is not, nevertheless, certain or guaranteed. The Scheme neither promises nor ensures any returns.

• Navi Nifty 50 Index Fund NAV: As of June 24, 2022, the Navi Nifty 50 Index Fund’s current net asset value for the Growth option is Rs. 9.9475.
• Returns: It has a trailing return of -0.9% over various periods. Comparatively, category returns over the same periods are -1.05 percent (1 year), 10.68 percent (3 years), and 10.06 percent (5yr).
• Fund Size: As of May 31, 2022, the Navi Nifty 50 Index Fund had assets under management totaling Rs. 366.87 crore.
• Navi Nifty 50 Index Fund Expense ratio: As of May 31, 2022, the fund’s expense ratio was 0.6%.
• Exit Load: There is no exit load for the given fund.
• The needed minimum investment is 500 rupees, with a further 100 rupees as the minimum supplementary investment. 500 rupees is the minimum SIP investment.

As the role of its current fund offering, Navi is allowing investors to participate in India’s top 50 companies at the lowest possible cost. We were able to achieve this low cost by using our high-quality technical support. The NFO began on July 3rd, 2021, and ended on July 12th, 2021.

Why Navi Nifty 50 Index Fund?

The open-ended large-cap equity Navi Nifty 50 Index Fund is a product of the Navi Mutual Fund House.

On July 15, 2021, the fund was launched.

About 80% of large-size funds underperformed the Nifty 50 Index during the past year.

The scheme invests in equities of companies that make up the Nifty 50 Index to produce a return that is equal to the Nifty 50 Index, according to measuring uncertainty.

The Nifty 50 index, which is a diversified portfolio of the 50 largest Indian stocks, is tracked by a mutual fund scheme. The NIFTY 50 Total Return Index is used as a metric.

Portfolio composition and asset allocation in Navi Nifty 50 Index Fund.

Roughly 99.84 percent of the fund’s assets are allocated to equities, 0.0 percent to debt, and 0.16 percent to cash and cash equivalents.

The top 3 sectors account for about 65.77 percent of the assets, compared to the top 10 stock holdings, which make up approximately 58.78 percent of the total assets.

The fund invests across market capitalizations and primarily adheres to an expansion style of investing, with about 0.0 percent going to gigantic and big-cap companies, 0.0 percent to mid-size companies, and 0.0 percent to small-cap companies.

The following Plans are part of the Scheme.

• Regular Plan
• Direct Plan.

Each of the abov*e plans includes a growth option.

Investors are required to specify the Plan/Option for which the subscription is made by checking the appropriate box on the application form.

Tax Repercussions of Navi Nifty 50 Index Fund.

• If modules are liquidated within a year after investing, gains are subject to a 15 percent Short-term Capital Gains Tax (STCG).
• Gains from units bought after one year of investment that total up to Rs. 1 lakh in a fiscal year are non-taxable.
• Long-term Capital Gain Tax, or LTCG, would be levied at a rate of 10% on gains above Rs. 1 lakh.
• The dividend income from this fund will be added to the investor’s income for Dividend Distribution Tax and taxed by the investor’s tax brackets.
• Additionally, the fund house must deduct a TDS of 10% on dividend income that exceeds Rs 5,000 in a fiscal year.

What makes Navi Nifty 50 Index Fund unique?

Over the previous year, Nifty 50 returns have outperformed the top 100 Indian businesses in 80 percent of actively managed funds.

You, therefore, have a greater chance of seeing larger profits by investing in the Nifty 50.

We give investors the chance to engage in low-cost investing because we think that because it’s your money, you should get the highest return possible.

The historical performance of the Nifty 50 has demonstrated that there is a 100% possibility that your money will increase in 7 years. Staying involved for a long time is therefore the greatest method to manage risk and accumulate money.

Advantages of purchasing Navi Nifty 50 Index Fund.

• Minimal Fee: The index fund with the lowest expense ratio.
• Diversification: Market volatility is lower for the program because it invests in the Nifty 50 index than it is for mid and small-cap stocks.
• Low Minimum Investment: With Navi, you may invest far less than Rs. 500 in the top 50 firms.

Who can invest in Navi Nifty 50 Index Fund unique?

• A busy professional who wants to invest in stocks but never has the time to do the necessary research and stock selection
• Have you made stock investments but burned your fingers by choosing the wrong ones?
• Curious about which mutual fund to choose but want to invest in.
• Advantages of purchasing Navi Nifty 50 Index Fund.
• The following investors should consider this product:
• growth in the capital throughout the long run.
• The Nifty 50 Index includes equity and equity-related instruments.
• Return that, depending on tracking inaccuracy, reflects the Nifty 50 Index’s performance.

Navi Nifty 50 Index Fund’s risk profile.

The following list of risk factors for this particular scheme:

• Investors shouldn’t invest in the Scheme until they can manage to bear the threat of breaking their investment because investments in equities and equity-related instruments carry a certain risk, including company-specific and market risks.
• Due to macroeconomic and microeconomic considerations, equity and equity-related instruments are by their very nature volatile and subject to daily price changes.
• The value of equity and equity-related instruments may change as a result of variables impacting the securities markets that could hurt certain securities, a certain sector, or all sectors. As a result, there may be a negative impact on the NAV of the Units issued under the Scheme.
• The strategy also entails the dangers of investing in debt instruments, money market securities, and derivatives.

Navi Nifty 50 Index Fund’s Risk management.

• Via portfolio diversification, risks are decreased as part of the risk control process. The needed quality of return stability would be made possible by this diversification. The AMC tries to determine securities that provide above-average yields while carrying lower levels of risk.
• The portfolio would periodically be rebalanced to reflect changes in the weights of the stocks in the Index.
• As a passive investment, the Nifty 50 Index fund is less risky than active fund management. Because of the decisions made by the fund management, there is no extra dimension of volatility or stock concentration.

Monitoring error risk.

Due to several circumstances, alterations to the underlying index, regulatory limits, and a lack of liquidity, the Fund Manager would not be able to invest the full corpus exactly in the same proportion as the underlying index, which could lead to Tracking Error.

It might make it more difficult for AMC to attain a close correlation with the Scheme’s underlying index. Therefore, the returns of the Scheme could differ from the index that it is based on.

The standard deviation of the difference between the underlying index’s daily returns and the scheme’s NAV is referred to as the “Tracking Error.”

The Fund Manager would continuously track the Scheme’s tracking error and make every effort to keep it as low as possible.

The achievement of any certain level of Tracking Error by the Scheme in comparison to the performance of the Underlying Index cannot be assured or guaranteed.