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:

1. The companies should be a part of Nifty 50.
2. The company should be compliant with IRDA dividend norms.
3. 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 :

*As of 31st December 2020

Nifty 50 Value 20 Index - Valuations vs Other indices 

*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-

About the scheme-

SIP Details