To make investing in the Indian manufacturing industry simpler, there is a fund called Navi Nifty India Manufacturing Index Fund. Based on the 6-month average free-float market, companies for the index are chosen from the combined universe of the Nifty 100, Nifty Midcap 150, and Nifty Smallcap 50 indexes. According to a statement from the company, the index is reconstituted and rebalanced semi-annually along with Nifty Broad-based indexes. The weight of each stock in the index is determined by its free float market capitalization. A minimum weight of 20% is also required for some manufacturing sectors in the index. Currently, the capital goods, metals & mining, healthcare, and auto & auto component sectors are the largest in the Nifty India Manufacturing Index. Sun Pharma, Reliance Industries, Tata Steel, Maruti Suzuki India, and Mahindra are among the top 10 stocks.
"The launch of the Navi Nifty India Manufacturing Index Fund is yet another illustration of Navi's focus on creative, cost-effective, and straightforward investing solutions," said Sachin Bansal, co-founder of Navi Group. India's economy heavily relies on manufacturing, thus we are happy to provide a product that lets our customers participate. The NFO for Navi Mutual Fund begins on August 12 and ends on August 23. For the direct plan and regular plan, the fund recommends total expense ratios (TER) of 0.15% and 1%, respectively. Aditya Mulki will oversee the fund's management.
Investment Strategy
The scheme seeks to achieve return equivalent to Nifty India ManufacturingIndex by investing in stocks of companies comprising Nifty India Manufacturing Index, subject to tracking error.
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