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Sachin Bansal’s Navi Nifty 50 Index Fund collects over Rs100 crore in NFO

Sachin Bansal has been working closely with Ather Energy and was among the first customers to take home the Ather 450 electric scooter in September. Photo: MintPremium
Sachin Bansal has been working closely with Ather Energy and was among the first customers to take home the Ather 450 electric scooter in September. Photo: Mint

  • An index fund seeks to replicate and track the returns of an index such as the Nifty 50. Investors who place their money in index funds essentially give up on the possibility of both outperformance and underperformance

MUMBAI: Navi Mutual Fund, part of Sachin Bansal’s technology-driven BFSI group Navi, whose new fund offer (NFO) was open from 3-12 July 2021, has accumulated more than Rs100 crore from around 17,000 investors, a release issued by the company said.

The fund is now open for investments across online investment channels or through financial advisors. Online channels include platforms like Groww, Coin by Zerodha, Paytm Money, IND Money. The collection comes even as the Nifty trades close to its all time highs of around 15,924.

In an interview to Mint in May, Saurabh Jain, managing director and CEO, Navi Mutual Fund, had said that the fund house will focus on reducing cost of investments for investors with the help of technology.

An index fund seeks to replicate and track the returns of an index such as the Nifty 50. Investors who place their money in index funds essentially give up on the possibility of both outperformance and underperformance. However, an index fund’s returns can differ from the underlying index, an issue measured by a metric called tracking error. The expense ratio offered by the fund at 0.06% for its direct plan offering is the lowest in the index schemes category so far. As per industry body AMFI’s June report, the overall passive fund folios number 13.5 lakh and Navi has gained 17,000 or approximately 1.3% of this folio base, during the NFO already.

Commenting on crossing the Rs100 crore NFO AUM (assets under management) mark, Jain said, “The success of this launch is not only from the AUM of this NFO but also through the awareness that has spread across investors around Index Fund investing and expense ratio. This is visible through the 1.4 lakh users who visited our website during these 10 days. This is the beginning of a long-term partnership with our investors for wealth creation and we are delighted with the response we have received for this Index Fund NFO."

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