Nippon India MF Launches Small Cap Index Fund

Nippon India Mutual Fund launched a new fund offer for a small-cap equity fund. The NFO for Nippon India Nifty Smallcap 250 Index Fund will open on September 28, 2020, and will close on October 9, 2020.

What is an index fund?

An index fund is a mutual fund that is designed to imitate a specific stock market index.

Investment Strategy

In this case, the stock market index that this mutual fund will imitate is Nifty Smallcap 250 index. It is an open-ended equity scheme that will replicate the Nifty Smallcap 250 index.

Here is what the indicative asset allocation looks like:

Instruments	Indicative Allocation (% of net assets)		Risk Profile
	Minimum	Maximum	High/Medium/Low
Securities constituting Nifty Smallcap 250 Index	95	100	Medium to High
Money Market instruments or tri-part repo and / or reverse repo schemes which invest in  money market securities or liquid Schemes	0	5	Low to Medium

Benchmark

The scheme will benchmark its performance against Nifty Smallcap 250 TRI.  The index represents the companies ranked 251-500 from Nifty 500. Hence, the index aims to measure the performance of small market cap companies.

Fund Details

The scheme has both direct and regular plans. Under each of the plans, the scheme has growth and dividend option. The mutual fund scheme provides dividend payout and dividend reinvestment options under the dividend variant.

Here are other details of the fund:

Name of the Fund	Nippon India Nifty Smallcap 250 Index Fund
Type of Scheme	An open-ended index fund which intends to replicate/imitate the Nifty Smallcap 250 Index
Benchmark	Nifty Smallcap 250 TRI
NFO Dates	Opens on September 28, 2020, and closes on October 9, 2020
Fund Manager	Mehul Sharma
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
Entry Load	Nil
Exit Load	Nil
Plans	Regular Plan and Direct Plan
Options	Growth and Dividend Option (Payout, Dividend Reinvestment Option)

SIP/SWP/STP

SIP
Type	Minimum Amount	Minimum Installments
Monthly	Rs. 100 and in multiples of Re. 1	60
Monthly	Rs 500 and in multiples of Re. 1	12
Monthly	Rs 1,000 and in multiples of Re. 1	6
Quarterly	Rs 500 and in multiples of Re. 1	12
Quarterly	Rs 1,500 and in multiples of Re. 1	4
Yearly	Rs 5,000 and in multiples of Re. 1	2

SWP

With the SWP facility, investors in this scheme can receive regular monthly/quarterly/half-yearly or yearly payments. The minimum amount which can be withdrawn is Rs.500 and in multiples of Rs. 100 after that.

STP

Fixed Transfer STP
Type	Minimum Amount	Days
Daily	Minimum of Rs. 100 and in multiples of Rs. 100 thereof	Daily
Weekly	Minimum of Rs. 1,000 and in multiples of Rs 100 thereof	STP will be executed on 1st, 8th, 15th and 22nd of every month
Fortnightly		On 1st and 15th of every month
Monthly		On any pre-specified date of every month
Quarterly	Minimum of Rs. 3000 and in multiples of Rs 100 after	On any pre-specified date of the first month of the quarter

There are other options apart from the fixed transfer plan under STP: capital appreciation STP and perpetual STP. You can refer to the scheme information document for more details.

Fund Manager

Mehul Sharma: Mr Sharma has over 14 years of experience as a fund manager and dealer of exchange-traded funds (ETFs) across different AMCs. 

Other schemes he manages are:

• Nippon India ETF Consumption
• Nippon India ETF Dividend Opportunities
• Nippon India ETF Gold BeES
• Nippon India ETF Infra BeES
• Nippon India ETF Nifty 100
• Nippon India ETF PSU Bank BeES
• Nippon India ETF Sensex
• Nippon India ETF Shariah BeES
• Nippon India Index Fund – Sensex Plan
• Nippon India Index Fund – Nifty Plan
• Nippon India Gold Savings Fund
• Nippon India ETF Nifty Smallcap 250
• Nippon India ETF NV20
• Nippon India Junior BeES FoF
• Nippon India ETF Sensex Next 50
• Nippon India ETF Nifty IT