NFOs of Nippon India Nifty Midcap 150 Index Fund, Nippon India Nifty 50 Value 20 Index Fund open

Passive investing theme picking up among investors as actively-managed funds find alpha generation a challenge

Staff Writer   /   February 4, 2021

Nippon Mutual Fund has launched two low-cost new fund offerings: Nippon India Nifty 50 Value 20 Index Fund and Nippon India Nifty Midcap 150 Index Fund. You can start investments with just Rs 5,000. Read on to get more details. 

NFO timings, details

Both the NFOs opened on 4th February, 2021 and will close on 12th February, 2021.

Fund Manager – Mehul Dama (for both NFOs) 

Entry Load & Exit Load – NIL
(for both NFOs) 

Plans- 
a) Growth Plan and b) Dividend Plan (for both NFOs) 

Nippon India Nifty 50 Value 20 Index Fund

This is an open ended scheme replicating/tracking Nifty 50 Value 20 index. The index’s top 5 stock weights are TCS, Infosys, HUL, ITC and L&T.

The fund will invest in the top 20 valued large cap companies from Nifty 50 index based on:
• High Dividend Yield & High Return on Capital Employed
• Low Price to Book Value Ratio & Low Price to Earnings Ratio

The index fund will mirror value strategy for portfolio construction as there will be exposure to stocks selected based on key value parameters like high ROCE, low PE Ratio, low PB Ratio and high Dividend Yield.

The fund offers blue-chip exposure as the index contains top 20 fundamentally driven value bluechip companies filtered from Nifty 50 universe.

There will be elimination of non-systematic risks like stock picking and portfolio manager selection, via investing in the Nifty 50 Value 20 stocks.

The fund will allow non demat account holders to seek exposure to 20 value-based stocks from Nifty 50 via investing in Nippon India Nifty 50 Value 20 Index Fund.

Investors can avail the benefit of Systematic Investment Plan (SIP). 

Nippon India Nifty Midcap 150 Index Fund

This is an open ended scheme replicating/tracking Nifty Midcap 150 index. The index’s top 5 stock weights are Apollo Hospitals, Shriram Transport, Voltas, Zee Entertainment and Yes Bank. 

The Nifty Midcap 150 index comprises 
• Companies ranked 101 to 250 within Nifty 500 Index
• Strong growth potential
• Diversified Portfolio across 18 sectors

The index is re-balanced on a semi-annual basis. The cut-off date is January 31 and July 31 of each year. 

The fund will provide exposure to the Midcap segment of the market, as the fund will invest in well diversified Nifty Midcap 150 index constit-
uents spread across 33 industries.

There will be elimination of non-systematic risks like stock picking and portfolio manager selection, via investing in the entire 150 
Midcap stock basket.

The fund aims to participate in the growth story of many of the Midcap stocks that could become Large caps.

It is an opportunity for non demat account holders to seek exposure to the Midcap segment of the market via investing in Nippon India Nifty Midcap 150 Index Fund.

Investors can avail the benefit of Systematic Investment Plan (SIP) facility.

If interested in investing in mutual fund NFOs, connect with us on [email protected] or register on wealthzi.com

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