Change in Minimum Application Amount for Navi Nifty Next 50 Index Fund

Navi Mutual Fund has announced an increase in the minimum investment amount for its Navi Nifty Next 50 Index Fund. Starting December 13, 2024, investors must now invest a minimum of ₹100 per application, up from the previous ₹10. This change is applicable only to direct investments, while the Systematic Investment Plan (SIP) remains unaffected. The fund offers opportunities to invest in India’s next large-cap companies beyond the Nifty 50, making it an appealing choice for diversification.

About Navi Nifty Next 50 Index Fund

Launched on January 19, 2022, the Navi Nifty Next 50 Index Fund is an open-ended scheme designed to replicate the NIFTY Next 50 TRI. It aims to provide exposure to potential future market leaders by investing in the top 50 companies outside the Nifty 50. The fund has demonstrated a return of 20.11% since its launch and boasts an expense ratio of 0.57% as of October 2024.

With assets under management (AUM) amounting to ₹675 crore, the fund offers sectoral diversification, which reduces dependency on specific industries. It also minimises fund manager bias since it passively tracks the index’s performance. While the fund carries a “Very High” risk, it appeals to investors seeking long-term growth with the potential to benefit from India’s evolving equity market.

Fund Features and Key Highlights

The fund is well-suited for individuals looking to diversify across sectors and invest in companies that may emerge as market leaders. It passively tracks the index, ensuring that risks from stock selection by fund managers are reduced. However, its exposure to market fluctuations requires investors to have a long-term horizon. The fund has generated returns of 43.21% over the past one year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.