The launch of this low-cost index fund comes at a time when many AMCs are rapidly increasing their expense ratios. Incidentally, US markets have seen huge growth in the passive space.
Navi Mutual Fund, which is a part of Sachin Bansal BFSI has announced the launch of Navi Nifty 50 Index Fund. It is an open ended scheme, which is the lowest cost as compared to any other index scheme in the passive fund category. This NFO of Sachin Bansal’s company will close on 12th July 2021 i.e. you have till 12th July to invest in it.
The investment objective of this scheme is to get returns equal to Nifty 50 index by investing in stocks of companies included in Nifty 50 index subject to tracking error. The 0.06 percent expense ratio proposed under this offer is the lowest ever in the category of index schemes.
will get benefit like this
The category wise average expense ratio for index funds is 0.25 per cent and many existing index funds charge an expense in the range of 0.15 per cent to 0.20 per cent. Navi’s new plan will be suitable for investors who want to gain access to long term capital gains, securities covered in Nifty 50 Index and growth of market giants.
More profit in less expense
Commenting on the new fund, Saurabh Jain, MD & CEO, Navi AMC Ltd. said that, all funds have professional portfolio managers. With an index fund, investors do not need to pay much to gain expertise in selecting stocks. The actual benefit to the investors is achieved by reducing the expense ratio, while providing them with the same quality professional portfolio management services through index funds.
This is the specialty of low cost index
The launch of this low-cost index fund comes at a time when many AMCs are rapidly increasing their expense ratios. Incidentally, US markets have seen huge growth in the passive space, with passive funds contributing around 40 per cent to AUM and Vanguard, the largest US AMC, focusing on providing low-cost investment options.
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