Home >Companies >News >Nippon India MF to launch flexicap fund; details here

NEW DELHI : Nippon Life India Asset Management on Tuesday announced that it will launch a flexicap fund that will invest in a diversified portfolio across large-, mid-, and small-caps based on market view and relative attractiveness.

The new fund offer (NFO) will open on 26 July and close on 9 August, and the fund will be benchmarked against Nifty 500 total return index. The minimum investment required is 500 and in the multiples of 1, thereafter.

The fund will be managed by Manish Gunwani, chief investment officer-equity along with Dhrumil Shah, Varun Goenka and Nikhil Rungta (co-fund manager), Kinjal Desai, fund manager-overseas.

As per the fund house, the scheme will attempt to create alpha through bottom-up stock selection and an appropriate allocation approach to identify opportunities in potentially high growth themes.

Nippon India Flexi Cap Fund will look to capitalize on the relative stability of large-caps through reasonable allocations to established leaders, along with an optimal mix of the growth opportunities offered by mid- and small-cap segments.

The fund will have a bias towards domestic recovery themes with investments across key areas such as beneficiaries of consolidation due to technology or regulation, ‘back to normal’ or business normalization, new business models which thrive on disruption, China plus one or import substitution, etc.

“A flexicap strategy can dynamically adapt to varied market scenarios and thus has the potential to outperform across market cycles. The current macro-economic conditions are favorable for the flexicap category as the global economy is expected to grow faster than estimated, capex cycle picking up with lower interest rates and liquidity support and earnings are also likely to improve as growth momentum picks up," said Gunwani.

In terms of exit load, 10% of the units allotted will be redeemed without any exit load, on or before completion of 12 months from the date of allotment of units. While any redemption in excess of such limit in the first 12 months from the date of allotment shall be subject to 1% exit load if redeemed or switched on or before completion of 12 months from the date of allotment of units, and nil, thereafter.

Notably, a flexicap fund recently closed by ICICI Prudential had garnered a record 10,200 crore through its NFO.

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