NFO: Nippon India Nifty India Manufacturing Index Fund to open on August 6th

Mumbai, August 1, 2025: Nippon India Mutual Fund has announced the launch of a new thematic index scheme, the Nippon India Nifty India Manufacturing Index Fund. The New Fund Offer (NFO) is scheduled to open on 6th August 2025 and will close on 20th August 2025. Following the NFO period, the scheme will reopen for continuous subscriptions and redemptions on or before 3rd September 2025. This open-ended index fund is designed to replicate the performance of the Nifty India Manufacturing Total Return Index (TRI), providing investors with exposure to India’s dynamic manufacturing ecosystem.

Key Scheme Highlights

Investment Objective and Strategy

The core objective of the scheme is to deliver investment returns that correspond to the total returns of the Nifty India Manufacturing Index, prior to expenses and subject to tracking error. To achieve this, the fund will employ a passive investment strategy, primarily investing in the same stocks and adhering to the same weightage as the underlying index.

Asset Allocation

The scheme will not invest in overseas securities, AT1/AT2 bonds, securitised debt, REITs, InvITs, or unlisted NCDs.

Nifty India Manufacturing Index Composition

The Nifty India Manufacturing Index, which serves as the benchmark, comprises stocks from diverse manufacturing-related sectors. These include automobiles, capital goods, chemicals, pharmaceuticals, metals, and industrials. The index applies weight caps at 5% per individual stock. Furthermore, two specific sectors, Automobile & Auto Components and Capital Goods, are mandated to maintain a minimum 20% allocation each within the index.

Top Constituents as of June 30, 2025

The index is rebalanced semi-annually in March and September.

Expense Ratio and NAV Disclosure

• Maximum Expense Ratio: 1.00% (Regular Plan)
• Additional TER: Up to 0.30% from B-30 cities (where eligible)
• Tracking Error Cap: ≤2% per annum under normal circumstances
• NAV Publication: Daily by 11:00 PM on AMC and AMFI websites

Taxation

The scheme qualifies as an equity-oriented mutual fund. Taxation is as follows:

Product Suitability

This scheme is well-suited for investors who are seeking long-term capital appreciation and are comfortable with a high level of equity exposure and its associated risks. It is particularly appropriate for those looking to passively participate in India’s ongoing manufacturing revival story. Investors are strongly advised to consult with financial advisors to assess the suitability of this product based on their individual risk profile and investment objectives.

Insights For Investors

• Exposure to India’s Manufacturing Growth
  This fund allows investors to tap into India’s rising manufacturing sector, backed by government initiatives like PLI (Production Linked Incentives), Make in India, and increased capex.
• Diversification Across Manufacturing Sectors
  The index includes companies from key sectors such as capital goods, automobiles, metals, chemicals, and pharmaceuticals, reducing sector-specific risk.
• Passive, Low-Cost Strategy
  With a passive investment approach and a capped maximum expense ratio of 1%, investors can benefit from index-like returns with minimal cost impact.
• Equity Tax Treatment
  Being an equity-oriented fund, it enjoys favourable tax treatment—10% on long-term gains (above Rs. 1 lakh) and 15% on short-term gains.
• Suitable for Long-Term Investors
  Best suited for investors with a high-risk appetite and a long-term horizon, especially those who want exposure to India’s industrial revival without active stock-picking.
• No Exit Load & Flexible Options
  The fund comes with no exit load and offers both Growth and IDCW options, allowing investors flexibility in choosing return formats.

About Nippon India Mutual Fund

Nippon India Mutual Fund (NIMF) stands as one of India’s largest asset management companies. It is sponsored by Nippon Life Insurance of Japan, a globally recognised financial services group. The fund house manages a comprehensive suite of active and passive investment offerings across various asset classes and is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). For more information, including the Scheme Information Document (SID), factsheets, and application forms, interested parties can visit mf.nipponindiaim.com.

Visit mf.nipponindiaim.com for more information and to access the SID, factsheets, and application forms.

REF: https://portal.amfiindia.com/spages/14288.pdf

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