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Navi Mutual Fund has launched its Navi Nasdaq 100 Fund of Fund, an open-ended equity scheme that will invest in units of overseas ETFs/Index Funds based on the Nasdaq 100 Index. The fund will have a TER of 0.13% for the direct plan, which is among the lowest in the category, as per the fund house.

The NFO opened on 3 March 2022 and will close on 17 March 2022. Investors can invest through online platforms like Groww, PaytmMoney, Zerodha Coin, INDMoney, Kotak Cherry, MF Utilities and more.

As per the press release, Nasdaq 100 index comprises 100 of the largest non-financial companies listed in the US. Nasdaq 100 Total Return Index has generated a compounded annual growth rate of 18.93%, 32.59%, 27.59%, 26.12% in rupee terms as on 31 January 2022, over 1 year, 3 years, 5 years, and 10 years respectively. With a market cap of $18 trillion, the index has grown ~6x over the last 10 years. 

The technology-heavy Nasdaq 100 Index has outperformed more than 90% of all large cap US funds over 1, 3, 5 and 10 years. It has also outperformed S&P 500 in 11 of the last 13 years. The index provides global exposure as well, since many non-US companies such as Baidu (China), Atlassian (Australia), ASML holdings (Netherlands) etc. are also part of in February 2022, stated the release.

According to the fund house, Nasdaq 100 Index has historically had low correlation with Indian indices, providing higher diversification benefits to Indian investors. Investors can also potentially benefit from better returns if the dollar appreciates against rupee. Nasdaq 100 (USD) had a 20-year annualized return of 12.93% from 31 Jan 2002 to 31 Jan 2022 whereas Nasdaq 100 (INR) returned 15.39%, due to the dollar appreciating 2.16% against rupee as on 31 January 2022.

Sachin Bansal, co-founder of the Navi Group said: “ I am excited to bring another international fund offering to Indian investors. Navi Nasdaq 100 Fund of Fund gives customers a simple and affordable way to invest in the leading technology companies of the world."

This is the fifth fund launched by Navi Mutual Fund this year. It launched the Navi Nifty Next 50 Index Fund and Navi Nifty Bank Index Fund in January, and the Navi US Total Stock Market Fund of Fund and the Navi Nifty Midcap 150 Index Fund in February. The fund house plans to launch two more funds by the end of April.

 

 

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