logo

Nippon India Flexicap Fund NFO: Investment Objective, Features, Taxation and SIP details

banner-img
author
verified
Gaurav Seth
20 Likes | 677 days ago

Like

Share

isVerifiedExpertAuthor is a Zfunds Verified Expert
author
Gaurav Seth
Gurugram
whatsapp

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.

Investment Objective 

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.

Features

  1. The fund will be investing a minimum of 65% of its assets in the equity and equity-related securities of every market capitalization.
  2. The fund may allocate its asset in debt or money market instruments.
  3. The fund can invest in any companies across the market capitalizations & sectors.
  4. The fund does not have any restriction to allocate its assets across market capitalization.

Benefits of Flexicap Strategy    

  1. Large investment universe
  2. Diversification across market caps
  3. Dynamic approach
  4. Potential to outperform in different market cycles

Nippon India Flexicap Fund - Investment Approach    

  1. Market cap allocation - Assets will be allocated across the market cap based on market view and attractiveness
  2. Growth with Stability - Reasonable allocation will be given to established sector leaders through a bottom-up stock selection approach
  3. 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

  1. Market cap allocation will be decided as per the Fundamentals, Macros, & sentiment factors.
  2. Flexibility to invest across markets and capture the different market trends.
  3. Fund will keep an eye on global cues.
  4. 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

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)
Equity and Equity-related securities of Large-cap, Mid-cap, and Small-cap companies65%100%
Debt & money market instruments0%35%

About the Scheme

Name of the fundNippon India Flexicap Fund
Fund launched byNippon India Mutual Fund
Asset Management CompanyNippon Life India Asset Management Limited
Type of schemeAn open-ended dynamic equity scheme primarily investing its assets in large-cap, mid-cap, and small-cap companies.
Investment ObjectiveThe scheme’s investment objective is to generate long-term capital appreciation by investing its assets in equity and equity-related securities across market capitalization.
BenchmarkNIFTY 500 TRI
Entry LoadNot Applicable
Exit Load

- 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

Taxation

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 & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
  • Payout of IDCW
  • Dividend of IDCW
Fund ManagersMr. Manish Gunwani and Mr. Dhrumil Shah

SIP Details

Type Minimum InstallmentsMinimum Amount
Monthly SIP60₹100 & in multiples of ₹1 thereafter
12₹500 & in multiples of ₹1 thereafter
6₹1,000 & in multiples of ₹1 thereafter
Quarterly SIP12₹500 & in multiples of ₹1 thereafter
4₹1,500 & in multiples of ₹1 thereafter
Yearly SIP2₹5,000 & in multiples of ₹1 thereafter

Get Investment Advice from India's Top Experts