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Nippon Life India launches two open-ended index funds; check details

The New Fund Offer (NFO) for both funds will open for subscription on April 16, 2025 and close on April 30, 2025

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Nippon Life India Asset Management (NAM India) has launched two new open-ended index funds - Nippon India Nifty 500 Quality 50 Index Fund and Nippon India Nifty 500 Low Volatility 50 Index Fund. 
 
The funds aim to provide investors with unique, cost-effective and diversified exposure to the Indian equity market by tracking the Nifty 500 Quality 50 Index and Nifty 500 Low Volatility 50 Index respectively, according to the company statement.
 
The New Fund Offer (NFO) for both funds will open for subscription on April 16, 2025 and close on April 30, 2025. Investors would require a minimum investment amount of ₹1,000 during the NFO and in multiples of ₹1 thereafter. 
 
 
Arun Sundaresan, head of ETF at Nippon Life India Asset Management, said, these funds are designed to provide investors with diversified exposure to top-performing companies across large, mid, and small-cap segments while providing targeted benefits such as low-cost entry, lower volatility, and better risk-adjusted returns. 
 
“Building upon our track record in passive investments, these new offerings reflect our ongoing dedication to providing investors with quality, cost-effective investment options,” he added.
 
Jitendra Tolani serves as the designated fund manager for both schemes.
 
According to the riskometer, the principal invested in both schemes will be at very high risk. 
 
No exit load will be charged on redemption or switch out from these schemes. The AMC will calculate and disclose the first NAV within 5 working days from the date of allotment, according to the scheme information document (SID).
 

About Nippon India Nifty 500 Quality 50 Index Fund

The Nippon India Nifty 500 Quality 50 Index Fund follows a rule-based “smart beta” approach to identify financially healthy companies based on key metrics such as profitability (Return on Equity), low leverage (Debt to Equity Ratio), and earnings stability (consistent EPS growth). By tracking the Nifty 500 Quality 50 Index, the fund combines passive investment with active factor selection.
 
The investment objective of the Nippon India Nifty 500 Quality 50 Index Fund is to provide returns that, before expenses, are commensurate to the total returns of the securities as represented by the Nifty 500 Quality 50 Index.
 
According to NAM India’s statement, the fund is suitable for investors seeking long-term capital growth, investments in equity and equity-related securities, and portfolio replicating the composition of the Nifty 500 Quality 50 Index, subject to tracking errors.
 

About Nippon India Nifty 500 Low Volatility 50 Index Fund

The Nippon India Nifty 500 Low Volatility 50 Index Fund’s strategy aims to provide better risk-adjusted returns over time through a focus on companies with lower volatility. The scheme’s investment objective is to provide investment returns that correspond to the total returns of the securities as represented by the Nifty 500 Low Volatility 50 Index, before expenses.
 
The fund is suitable for investors seeking long-term capital growth, investments in equity and equity-related securities, and portfolios replicating the composition of the Nifty 500 Low Volatility 50 Index, subject to tracking errors.

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First Published: Apr 16 2025 | 2:26 PM IST

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