Navi MF launches Nifty index fund with lowest charges

Our Bureau Mumbai | Updated on June 28, 2021

NFO opens for subscription on July 3 and close on July 12

Navi Mutual Fund, part of Sachin Bansal’s BFSI Group Navi, has announced the launch of Navi Nifty 50 Index Fund – an open-ended equity scheme, which will replicate the Nifty 50 Index with the lowest cost, compared to any other index schemes in the passive funds category.

The NFO opens for subscription on July 3 and close on July 12.

The scheme will charge an expense ratio of just 0.06 per cent compared to an industry average of 0.25 per cent.

Navi’s new scheme will be suitable for investors who are seeking long-term capital appreciation, investment in securities covered by Nifty 50 Index, and access to the growth of market leaders.

Mutual funds fare poorly on skin-in-the-game metric

Saurabh Jain, MD and CEO, Navi AMC, said the real benefit to the investor is brought by lowering the expense ratio while still providing the same quality professional portfolio management through index funds.

Navi has lowered the cost to 0.06 per cent for the direct plan offering, which is the lowest in the index schemes category as of today, he said.

The launch of this low-cost index fund comes at a time when many AMCs have been steeply hiking their expense ratios.

Incidentally, the US markets have seen a huge growth in the passive space, with passive funds contributing to nearly 40 per cent of AUM and the largest US AMC, Vanguard, focussing on providing low-cost investment options.

Published on June 28, 2021

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