Nippon India Nifty 50 Value 20 Index Fund NFO

Nippon India Mutual Fund has announced the launch of the Nippon India Nifty 50 Value 20 Index Fund. The fund is an open-ended scheme that will be replicating the constituents of the Nifty 50 value 20 Index in the same allocation pattern.

The New Fund Offer (NFO) starts on 04th February 2021 and will end on 12th February 2021. The fund will re-open for continuous sale and purchase on or before 26th February 2021.

Investment Objective

The investment objective of the scheme is to provide long-term capital growth by generating returns closely corresponding to the returns of the securities constituting the Nifty 50 Value 20 Index.

What is the Nifty 50 Value 20 Index?

Nifty 50 Value 20 index is designed to represent the performance and behavior of value companies of the Nifty 50 Index.
The index consists of 20 bluechip value companies with high liquidity listed on the National Stock Exchange.
The companies with a low P/E ratio & P/B ratio and high dividend yield & return on capital employed are normally the value companies.
Selection criteria for the value 20 companies are:

The companies should be a part of Nifty 50.
The company should be compliant with IRDA dividend norms.
Stock selection is done on the stock rankings. These rankings are based on the following weights: 40% ROCE, 30% P/E, 20% P/B, and 10% Dividend yield.

Top Constituents of Nifty 50 Value 20 Index :

Name of Company	Sector	Weightage
Infosys Limited	IT	15.63%
Tata Consultancy Services Limited	IT	14.58%
Hindustan Unilever Limited	Consumer Goods	12.27%
ITC Limited	Consumer Goods	10.47%
Larsen & Toubro Limited	Construction	9.02%
HCL Technologies Limited	IT	5.89%
Tech Mahindra Limited	IT	3.45%
Wipro Limited	IT	3.29%
Power Grid Corporation of India Limited	Power	2.79%
Tata Steel Limited	Metals	2.79%

*As of 31st December 2020

Nifty 50 Value 20 Index - Valuations vs Other indices

Index Name	P/E Ratio	P/B Ratio	Dividend Yield
Nifty 50 Value 20	28.80	4.00	2.16%
Nifty 50	39.34	4.09	1.10%
Nifty 100	39.80	4.14	1.09%
Nifty 500	45.54	3.85	1.17%

*As of 15th January 2021

Features

The Fund will be investing at least 95% of its assets in securities constituting the Nifty 50 Value 20 Index.
The fund offers exposure to all the 20 value companies of the Nifty 50 through a single unit.
Lower expense ratio as compared to other active funds.

Why invest in Nippon India Nifty 50 Value 20 Index Fund?

Nippon India Nifty 50 Value 20 Index gives the exposure to stocks selected on the basis of key-value parameters like low P/E & P/B ratio and high ROCE & Dividend yield.
The index has the top 20 bluechip value companies which are fundamentally driven.
The companies are filtered from the universe of the Nifty 50 Index.
The fund invests in the whole basket of securities under the Nifty 50 Value 20 Index which reduces the non-systematic risks like stock picking and fund manager selections.

Who Should Invest?

This scheme is suitable for investors who are -

Interested in long-term capital growth.
Interested in earning returns that closely correspond to the returns generated by the Nifty 50 Value 20 Index, subject to tracking errors.
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)	Risk Profile
Equity securities representing Nifty 50 value 20 Index	95%	100%	Moderate to High
Money market instruments, reverse repo, TriParty repo, and units of other schemes investing in money market and liquid schemes	0%	5%	Low to Moderate

About the scheme-

Name of the fund	Nippon India Nifty 50 value 20 Index Fund
Fund launched by	Nippon India Mutual Fund
Asset Management Company	Nippon Life India Asset Management Limited
Type of scheme	An open-ended scheme replicating or tracking Nifty 50 Value 20 Index
Investment Objective	The investment objective of the scheme is to provide long-term capital growth to investors by generating returns closely corresponding to the total returns of securities representing the Nifty 50 Value 20 Index.
Benchmark	Nifty 50 Value 20 TRI
Entry Load	Not Applicable
Exit Load	Not Applicable
Minimum Application Amount	₹ 5,000 & in multiple of ₹ 1 thereafter
Minimum Additional Amount	₹ 1,000 & in multiple of ₹ 1 thereafter
SIP Top-up, STP,DTP & SWP	Available
Plans Available	Regular Direct
Options	Growth Dividend Payout Dividend Reinvestment
Fund Managers	Mr. Mehul Dama

SIP Details

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
Quarterly SIP	4	₹ 1,500 & in multiples of ₹ 1 thereafter
Annual SIP	2	₹ 5,000 & in multiples of ₹ 500 thereafter