Nippon India Flexicap Fund NFO
Nippon India Mutual Fund has announced the launch of the Nippon India Flexicap Fund. The scheme would be predominantly investing its assets in large-cap, mid-cap, and small-cap companies.
The New Fund Offer (NFO) starts on 26th July 2021 and will end on 09th August 2021.
The scheme’s investment objective is to generate long-term capital growth by investing its assets in equity and equity-related securities of large-cap, mid-cap, and small-cap companies.
- The fund will be investing a minimum of 65% of its assets in the equity and equity-related securities of every market capitalization.
- The fund may allocate its asset in debt or money market instruments.
- The fund can invest in any companies across the market capitalizations & sectors.
- The fund does not have any restriction to allocate its assets across market capitalization.
Benefits of Flexicap Strategy
- Large investment universe
- Diversification across market caps
- Dynamic approach
- Potential to outperform in different market cycles
Nippon India Flexicap Fund - Investment Approach
- Market cap allocation - Assets will be allocated across the market cap based on market view and attractiveness
- Growth with Stability - Reasonable allocation will be given to established sector leaders through a bottom-up stock selection approach
- Investment Approach -
- Lower deviation in mega-caps or large caps
- Active divergence in the rest of the large-cap basket
- Focus on core growth and new-age businesses for mid and small caps
Nippon India Flexicap Fund - Investment Strategy
- Market cap allocation will be decided as per the Fundamentals, Macros, & sentiment factors.
- Flexibility to invest across markets and capture the different market trends.
- Fund will keep an eye on global cues.
- Risk management measures will be made to create an optimal risk-return profile.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Investors who want to invest in a well-diversified portfolio.
- Investors who want to invest in companies across market capitalization.
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)|
|Equity and Equity-related securities of Large-cap, Mid-cap, and Small-cap companies||65%||100%|
|Debt & money market instruments||0%||35%|
About the Scheme
|Name of the fund||Nippon India Flexicap Fund|
|Fund launched by||Nippon India Mutual Fund|
|Asset Management Company||Nippon Life India Asset Management Limited|
|Type of scheme||An open-ended dynamic equity scheme primarily investing its assets in large-cap, mid-cap, and small-cap companies.|
|Investment Objective||The scheme’s investment objective is to generate long-term capital appreciation by investing its assets in equity and equity-related securities across market capitalization.|
|Benchmark||NIFTY 500 TRI|
|Entry Load||Not Applicable|
- Redemption of 10% units within 1 year - NIL
- Redemption of more than 10% of units within 1 year - 1%
- Redemption of units after 1 year - NIL
Taxed as Equity
-If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15%
-If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year
|Minimum Application Amount||₹ 500 & in multiples of ₹ 1 thereafter|
|Minimum Additional Amount||₹ 100 & in multiples of ₹ 1 thereafter|
|STP & SWP||Available|
|Fund Managers||Mr. Manish Gunwani and Mr. Dhrumil Shah|
|Type||Minimum Installments||Minimum Amount|
|Monthly SIP||60||₹100 & in multiples of ₹1 thereafter|
|12||₹500 & in multiples of ₹1 thereafter|
|6||₹1,000 & in multiples of ₹1 thereafter|
|Quarterly SIP||12||₹500 & in multiples of ₹1 thereafter|
|4||₹1,500 & in multiples of ₹1 thereafter|
|Yearly SIP||2||₹5,000 & in multiples of ₹1 thereafter|