The New Fund Offers will close for subscription on February 16.
Nifty Bank and Nifty IT indexes have been introduced by Nippon India Mutual Fund.
Investors in these passively managed index funds will get an entire basket of stocks rather than individual companies.
Forty percent of the entire amount spent globally on IT services is outsourced, with India holding a fifty-eight percent market share. A wide range of clients from the US, UK, and Europe provide this revenue.
Over the past year, the Nifty IT Index has returned almost 27%, outperforming the Nifty 50 over 50% of the time during that same period.
The Nippon India Bank Index Fund provides investors with a diversified portfolio of investments in the top 12 banks in India, replicating the structure of the Nifty Bank Index. In the past one and three years, the Nifty Bank Index has returned 13% and 16%, respectively.
In FY23, Indian banks’ net profits increased by 45%. In addition, loan growth in the past year has surpassed 15%. Bank expansion is also being aided by the notable rise in digital payments.
In addition to offering sector-specific growth, these funds are less expensive than actively managed funds and offer much-needed diversity because each unit in the fund gives exposure to the whole index of companies.
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