Sachin Bansal’s Navi Mutual Fund launches Nifty 50 Index Fund with ‘lowest’ expense ratio: Should you invest?

Consultant picture

Sachin Bansal’s Navi Mutual Fund in the present day (June 25, 2021) introduced the launch of Navi Nifty 50 Index Fund. The brand new fund is an open-ended fairness scheme that might replicate the Nifty 50 Index, with the “lowest value” in comparison with another index schemes within the passive funds class, Navi Mutual Fund mentioned in a press release. The brand new low-cost index fund has been launched at a time when many AMCs have been steeply climbing their expense ratios.

Funding goal: Navi Mutual Fund mentioned that the funding goal of the scheme is to attain returns equal to Nifty 50 Index by investing in shares of firms comprising Nifty 50 Index, topic to monitoring error.

The 0.06% expense ratio has been proposed to be charged by the fund for its direct plan providing. It’s the lowest within the index schemes class to date, Navi Mutual Fund mentioned in a press release.

For index funds, the class common expense ratio is 0.25% and plenty of current index funds are charging expense within the vary of 0.15% to 0.20%.

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Must you make investments? 

Navi Mutual Fund’s new scheme could be appropriate for traders who’re in search of long-term capital appreciation, funding in securities coated by Nifty 50 Index and entry to the expansion of market leaders.

Key dates

The ten-day NFO will open on third July 2021 and shut for subscriptions on 12 July 2021.

Commenting on the brand new fund, Saurabh Jain, MD and CEO, Navi AMC Restricted mentioned, “All funds have skilled portfolio managers. With an index fund, traders don’t must pay extra for getting the experience to hand-pick shares. The true profit to the investor is introduced by decreasing the expense ratio whereas nonetheless offering the identical high quality skilled portfolio administration by means of index funds. Working with our companions and leveraging our know-how background, Navi has lowered the price to 0.06% for the direct plan providing, which is the bottom within the index schemes class, as of in the present day. Our purpose is to have the ability to maintain offering funding alternatives to traders at the very best value.”

Navi Mutual Fund is part of Sachin Bansal’s BFSI group Navi. Other than mutual funds, Navi gives a variety of monetary companies and merchandise comparable to private loans, housing loans and medical insurance.