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Nippon India Mutual Fund is launching a flexi-cap fund of fund. The new fund offer (NFO) of the fund opens on December 10 and closes on December 24.

What is a fund of fund?

A fund of fund (FoF) is a mutual fund that invests in other mutual funds in the market. FoFs can be of various types. They may invest in equity or debt funds, index funds, ETFs, commodities or they may even have international exposure.

Read More on Groww: Fund of Funds

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Investment Objective

This mutual fund will operate as an open-ended mutual fund investing in units of index funds or exchange-traded funds (ETFs).

Here is what the indicative asset allocation looks like:

Instruments Indicative Allocation (% of net assets) Risk Profile
Minimum Maximum High/Medium/Low
Units of Nippon India ETFs/Index Funds of Nippon India Mutual Fund  95 100 Medium to High
Debt and Money Market Instruments 0 5 Low to Medium 

Benchmark

The scheme will benchmark its performance against the Nifty 500 TRI index. It represents the top 500 companies based on full market capitalisation.

What is TRI: The TRI version of an index takes into account the stock price and the dividend payouts of the stocks while reflecting the final stock price.

Fund Details

Name of the Fund Nippon India Passive Flexicap FoF
Type of Scheme An open-ended fund of fund (FoF) investing in units of ETFs/Index Funds of Nippon India Mutual Fund
Benchmark Nifty 500 TRI Index
NFO Dates Opens on December 10, 2020, and closes on December 24, 2020
Fund Manager Mehul Dama
Minimum Application Amount/Minimum Purchase Amount (including switches) Rs. 5,000 and in multiples of Re. 1 after that
Minimum Additional Investment (including switches) Rs 1,000 and in multiples of Re 1 after that
Minimum Redemption Amount Rs 100 or any number of units
Minimum SIP Amount
  • Rs.100 per month and in multiples of Re. 1 after that for minimum 60 months 
  • Rs.500 per month and in multiples of Re. 1 after that for minimum 12 months 
  • Rs.1,000 per month and in multiples of Re. 1 after that for minimum 6 months
Entry Load N.A.
Exit Load Nil
Plans Regular Plan and Direct Plan
Options Growth and Dividend Option (Payout, Dividend Reinvestment Option)

Fund Manager

Mehul Dama

Mr Dama is a fund manager for the ETF section. He has over 14 years of experience during which he has worked with different asset management companies in various capacities. 

Other funds managed by him are:

  • Nippon India ETF PSU Bank BeES
  • Nippon India ETF Gold BeES
  • Nippon India ETF Infra BeES
  • Nippon India ETF Shariah BeES
  • Nippon India Index Fund – Nifty Plan
  • Nippon India Index Fund – Sensex Plan
  • Nippon India ETF Dividend Opportunities,
  • Nippon India ETF Consumption
  • Nippon India ETF Nifty 100
  • Nippon India ETF Sensex
  • Nippon India ETF NV20
  • Nippon India Gold Savings Fund
  • Nippon India ETF Nifty Midcap 150
  • Nippon India Junior BeES FoF
  • Nippon India ETF Nifty IT
  • Nippon India Nifty Smallcap 250 Index Fund
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Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.