Nippon India Nifty 500 Equal Weight Index Fund NFO: Review, Date & Nav

Nippon India Nifty 500 Equal Weight Index Fund: Complete Overview

If you're an established participant or new to the world of New Fund Offer, you've come to the right place to learn about the latest trends, insights, and news of NFO Mutual Fund. Here at the Nippon India Nifty 500 Equal Weight Index Fund NFO Blog, we're dedicated to providing you with useful information on this new NFO, including financial characteristics and any prior performance.

“Nippon India Nifty 500 Equal Weight Index Fund” launched by Nippon India Mutual Fund is an open-ended scheme that tracks and replicates the Nifty 500 Equal Weight Index under Nippon AMC. The NFO date is from August 21 to September 04, 2024, with an NFO price of Rs.1000 and in multiples of Rs.1 thereafter.

Nippon India Nifty 500 Equal Weight Index Fund NFO Details

The scheme is suitable for investors who want to achieve long-term wealth gain and seek to invest in equities and equity-related securities and portfolios that replicate the composition of the Nifty 500 Equal Weight Index, subject to tracking errors. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest 95-100% of its units in Securities comprising the Nifty 500 Equal Weight Index and 0-5% in Cash and its equivalents, money market instruments, and/or schemes that invest in liquid schemes or money market securities.

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Fund Overview

The Nippon India Nifty 500 Equal Weight Index Fund NFO minimum subscription amount is Rs.1000 and in multiples of Rs.1 thereof.

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on 16 September 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Nippon India Nifty 500 Equal Weight Index Fund” or directly with the AMC or simply click the ‘Banner’ below.

The Objective of The Fund

The Scheme aims to generate returns, subject to tracking mistakes, that are proportionate to the overall returns of the securities as measured by the Nifty 500 Equal Weight Index before expenses. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Peers of Nippon India Nifty 500 Equal Weight Index Fund

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

• As an index scheme, the Scheme uses a passive investment strategy and will only make investments in securities that make up a single, chosen index by the Scheme's investment goal.

• Every index fund has tracking error, which can lead to schemes producing returns that are out of line with the Nifty 500 Equal Weight Index's performance.

• The scheme's success will be directly impacted by the Nifty 500 Equal Weight Index's performance. Therefore, any modification in composition due to weighting or stock selection will affect the scheme.

• Nippon India Nifty 500 Equal Weight Index Fund is a type of passively managed index scheme. Funds are invested in equities of companies that make up the underlying index at the same weights as they do in the underlying index. The underlying index's composition is subject to periodic modifications that could be made by the index service provider.

Past Performance of Index Funds

Nippon India Nifty 500 Equal Weight Index Fund NFO-Who Can Invest?

This Fund is ideal for those who want to achieve long-term capital gain and seek to invest in equities and equity-related securities and portfolios that replicate the composition of the Nifty 500 Equal Weight Index, subject to tracking errors. 

Nippon India Nifty 500 Equal Weight Index Fund-Growth Fund Managers:

• Mr. Himanshu Mange.

Conclusion

The Nippon India Nifty 500 Equal Weight Index Fund is appropriate for investors who are high risk-tolerant and aiming for capital maturity over a long horizon by investing in portfolios that replicate the composition of the Nifty 500 Equal Weight Index and equity-related instruments. Always assess your Financial Goals, Risk tolerance, time horizons, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.