Navi Nifty 50 Index Fund: Sachin Bansal’s Navi Mutual Fund Launches Nifty 50 Index Fund with Lowest Expense Ratio: Should You Invest?


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Sachin Bansal’s Navi mutual fund announced today (June 25, 2021) the launch of the Navi Nifty 50 index fund. The new fund is an open-ended equity program that would replicate the Nifty 50 index, with the ‘cost lowest ”relative to any other index program in the passive fund category, Navi Mutual Fund said in a statement. The new low cost index fund was launched at a time when many AMCs have sharply increased their expense ratios.

Investment objective: Navi Mutual Fund has stated that the program’s investment objective is to achieve returns equivalent to the Nifty 50 Index by investing in stocks of companies comprising the Nifty 50 Index, subject to tracking error.

It has been proposed that the expense ratio of 0.06% be charged by the fund for its direct plan offering. This is the lowest in the index plan category so far, Navi Mutual Fund said in a statement.

For index funds, the category average expense ratio is 0.25% and many existing index funds charge fees in the range of 0.15% to 0.20%.

Should we invest?

Navi Mutual Fund’s new program would suit investors seeking long-term capital appreciation, investment in securities covered by the Nifty 50 Index and access to growth from market leaders.

Key dates

The 10-day NFO will open on July 3, 2021 and close for subscriptions on July 12, 2021.

Commenting on the new fund, Saurabh Jain, MD and CEO of Navi AMC Limited said, “All funds have professional portfolio managers. With an index fund, investors don’t need to pay more to gain the expertise to select stocks. The real advantage for the investor lies in the reduction of the expense ratio while offering the same quality of professional portfolio management through index funds. By working with our partners and leveraging our technological experience, Navi reduced the cost to 0.06% for the direct plan offering, which is the lowest in the index pattern category to date. Our goal is to be able to continue to offer investment opportunities to investors at the best possible cost. “

Navi Mutual Fund is part of the BFSI group of Sachin Bansal, Navi. In addition to mutual funds, Navi offers a range of financial products and services such as personal loans, home loans and health insurance.

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