NFO : Nippon Nifty Financial Services 3 to 6 months debt index fund to open on July 28

Mumbai, July 24, 2025 – Nippon India Mutual Fund is set to launch its new Nifty Financial Services 3 to 6 Months Debt Index Fund, with the New Fund Offer (NFO) opening on July 28, 2025, and closing on August 4, 2025. The scheme is aimed at conservative investors seeking relatively low interest rates and credit risk through high-quality, short-duration financial instruments.

Scheme Highlights

• This is an open-ended target duration index fund, designed for short-term fixed-income investments.
• The fund aims to track the Nifty Financial Services 3-6 Months Debt Index.
• The New Fund Offer (NFO) will be open from July 28 to August 4, 2025.
• The scheme will reopen on or before August 14, 2025.
• It is managed by two experienced professionals – Mr. Vikash Agarwal and Mr. Vivek Sharma.
• The NFO price is ₹10 per unit, making it accessible for first-time investors.
• There is no exit load, meaning investors can redeem their units without penalties.
• The fund is classified under Risk Class A-I, indicating relatively low credit and interest rate risk.
• Available under Regular and Direct Plans, with options for Growth or Income Distribution cum Capital Withdrawal (IDCW) in payout or reinvestment mode.

Asset Allocation Strategy

The scheme will passively track the Nifty Financial Services 3 to 6 Months Debt Index, investing 95% to 100% of its assets in AAA-rated CPs and CDs with 3–6 month maturities, and up to 5% in cash or money market instruments.

• The fund will primarily invest 95% to 100% of its assets in securities that are part of the Nifty Financial Services 3–6 Months Debt Index. These instruments carry a low-risk profile.
• Up to 5% of the portfolio may be allocated to money market instruments and cash equivalents, which also fall under the low-risk category.
• This conservative allocation strategy ensures stability and minimal risk.

The index is composed of high-quality issuers, including HDFC Bank, Axis Bank, Tata Capital, Bajaj Finance, and LIC Housing Finance, each carrying an equal index weight of 7.14% as of the latest data.

Facilities Offered

The scheme will offer a range of investor-friendly features:

• Systematic Investment Plan (SIP)
• Systematic Transfer Plan (STP)
• Systematic Withdrawal Plan (SWP)
• Auto-switch from existing liquid/debt schemes during NFO
• ASBA and MF Utility-enabled digital investments

Expense Ratio and Taxation

The maximum Total Expense Ratio (TER) is capped at 1.00%, with an additional 0.30% permitted for inflows from B30 cities, subject to SEBI rules. For tax purposes, this debt-oriented scheme will be subject to short-term capital gains tax regardless of holding period, as per amendments effective April 1, 2023.

Fund Manager Profiles

• Vikash Agarwal, Senior Fund Manager, has 19+ years of experience across HDFC AMC and L&T Forex Trading before joining NAM India.
• Vivek Sharma, Fund Manager – Fixed Income, brings 18+ years of expertise in fixed income strategy and execution.

Strategic Positioning

This product adds to Nippon India’s expanding passive fund lineup, offering investors a short-duration solution in the financial debt space. The strategy benefits from a high credit quality basket of CPs and CDs, minimal duration volatility, and predictable index-linked returns.

About Nippon India Mutual Fund

Nippon India Mutual Fund is one of India’s largest AMCs, managing assets across equity, debt, hybrid, and index-based schemes. It is backed by Nippon Life Insurance, Japan, and listed under Nippon Life India Asset Management Ltd (NAM India).

REF: https://portal.amfiindia.com/spages/14271.pdf

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