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NEW DELHI: Navi Mutual Fund has announced the launch of its sixth fund for this year, the Navi Nifty India Manufacturing Index Fund. This is India’s first open-ended index fund that will seek to replicate the Nifty India Manufacturing Index, which tracks the performance of manufacturers among the top 300 companies in India.

Navi Nifty India Manufacturing Index Fund aims to simplify investing in the Indian manufacturing sector. The companies in the index are selected from the combined universe of Nifty 100, Nifty Midcap 150 and Nifty Smallcap 50 index based on 6-month average free-float market. The weight of each stock in the index is based on its free float market capitalisation and is reconstituted and rebalanced semi-annually along with Nifty Broad-based indices, according to a statement by the company.

The index also has a minimum weight of 20% for certain manufacturing sectors. The largest sectors in the Nifty India Manufacturing Index currently are automobile & auto components, capital goods, healthcare, and metals & mining. The top 10 stocks including Sun Pharma, Reliance Industries, Tata Steel, Maruti Suzuki India, Mahindra & Mahindra and JSW Steel constitute about 37 percent of the index.

Sachin Bansal, Co-Founder of Navi Group, said, “The launch of the Navi Nifty India Manufacturing Index Fund is yet another example of Navi’s focus on innovative, cost-effective and simple investment products. Manufacturing is an important part of the Indian economy and we are glad to offer a product that allows our customers to play a part in that story."

Navi Mutual Fund’s NFO opens on 12 August and closes on 23 August. The fund proposes to have a total expense ratio (TER) of 0.15% and 1% for the direct plan and regular plan, respectively. The fund will be managed by Aditya Mulki.

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