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Home / Mutual Funds / News /  Navi Nifty 50 Index Fund AUM crosses 500 crore

Navi Nifty 50 Index Fund AUM crosses 500 crore

The scheme’s AUM has grown five times in the 15 months since its launch. It had collected over 100 crore during its new fund offer (NFO) period last year last year. (iStockphoto)

The Nifty 50 index is a well-diversified 50 companies index reflecting overall market conditions. The index is computed using a free float market capitalization method.

Sachin Bansal backed-Navi Mutual Fund has announced that its Nifty 50 Index Fund, which was launched in July 2021, has crossed assets under management of 500 crore.

Sachin Bansal backed-Navi Mutual Fund has announced that its Nifty 50 Index Fund, which was launched in July 2021, has crossed assets under management of 500 crore.

According to the fund house, the scheme’s AUM has grown five times in the 15 months since its launch. It had collected over 100 crore during its new fund offer (NFO) period last year last year.

According to the fund house, the scheme’s AUM has grown five times in the 15 months since its launch. It had collected over 100 crore during its new fund offer (NFO) period last year last year.

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The Nifty 50 index is a well-diversified 50 companies index reflecting overall market conditions. The index is computed using a free float market capitalization method.

The five top stocks in terms of weightage are Reliance Industries Ltd. (11.69%), HDFC Bank Ltd. (8.37%), ICICI Bank Ltd. (7.92%), Infosys Ltd. (7.02%) and HDFC Ltd (5.69%)

Notably, out of 17 Nifty 50 index funds in the country, only seven funds have crossed the 500 crore AUM mark.

Navi Nifty 50 Index Fund continues to offer an expense ratio of 0.06% under direct plan, which is the lowest in its category.

The fund’s tracking error (TE) is significantly lower than the category average in 2022. Navi Nifty 50 Index Fund has a TE of 0.04% as compared to the category average TE of 0.19%.

The fund boasts a diverse investor base of more than 75,000 existing investors.

Commenting on the fund crossing the 500 crore AUM mark, Sachin Bansal, co-founder of Navi Group, said, “We are delighted that Navi Nifty 50 index fund has become one of only seven Nifty 50 index funds in the country to cross the 500 crore AUM milestone. This was the first Navi fund we launched as part of our passive-first strategy, and we will continue to focus on offering our customers innovative, cost-effective and simple investment products."

Similar to US, passive funds in India have started gaining more popularity.

The cumulative three-month inflow in passive funds, that includes index funds and exchange traded funds (ETFs), stood at 42,278 crore as of August end, while active funds had net inflow of 30,515 crore during the same duration.

As per media reports, this is the first time since April 2021, the cumulative three-month rolling inflow of passive funds is higher than active funds.

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