#NaviAMC #IndexFund #NiftyMidSmallcap400 #NFO #PassiveInvesting #Midcap #Smallcap #MutualFund #Investment #EquityMarket
Mumbai: Navi AMC has introduced the Navi Nifty MidSmallcap 400 Index Fund, a new open-ended scheme positioned as India’s first index fund designed to mirror the combined universe of mid and small-cap companies. The fund aims to offer investors a simplified, diversified, and cost-efficient pathway into these high-growth segments of the Indian equity market.
🎯 NFO Details and Fund Structure
The New Fund Offer (NFO) for the scheme commenced on November 24 and will remain open for subscription until December 5. This passive fund distinguishes itself with a low entry barrier, allowing investors to start with a minimum investment of just ₹100.
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Benchmark Index: The fund is designed to replicate the performance of the Nifty MidSmallcap 400 Total Return Index.
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Index Composition: This is a composite benchmark maintained by NSE Indices, which combines the 150 companies from the Nifty Midcap 150 index and the 250 companies from the Nifty Smallcap 250 index, totalling 400 stocks.
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Methodology: It is a free-float market-cap-weighted index, meaning the weight of each stock is determined by the value of its freely traded shares.
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Objective: The primary objective is to generate returns that are commensurate with the index’s performance, subject to tracking error.
💡 Why the MidSmallcap 400?
Aditya Mulki, CEO of Navi AMC, emphasized the strategic importance of this new product. He stated that the index provides a broad representation of mid- and small-cap companies, a segment that is often at the forefront of the country’s economic growth but can be difficult for individual investors to access in a highly diversified manner.
By packaging 400 stocks into a single index fund, Navi AMC’s direct-to-customer model promotes transparency and accessibility, allowing investors to participate in the dynamic, high-growth, albeit high-volatility, potential of these market segments without the complexities of active stock selection.
📊 Historical Performance Snapshot
While the NFO is new, the underlying index has a history of robust growth. For investors comfortable with “very high risk”, the index has shown strong long-term compounding potential:
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1-Year Return (CAGR): Approx. 28.81%
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5-Year Return (CAGR): Approx. 17.10%
The launch of this new fund aligns with the growing trend of investors seeking rules-based, passive strategies to build long-term wealth.
#NaviAMC #IndexFund #NiftyMidSmallcap400 #NFO #PassiveInvesting #Midcap #Smallcap #MutualFund #Investment #EquityMarket
