Subscription Resumes in Nippon India Mutual Fund International Schemes

Nippon India Mutual Fund Announces Resumption of International Funds Subscription

Nippon India Mutual Fund has officially reopened subscription for its international schemes, effective from October 15, 2024. Investors can now invest in these global equity funds through lump sum, switch-ins, and new Systematic Investment Plan (SIP) or Systematic Transfer Plan (STP) registrations.

This move offers investors exposure to international markets through the following schemes:

Nippon India ETF Hang Seng BeES

Scheme Overview:
An open-ended index scheme, Nippon India ETF Hang Seng BeES invests in overseas securities listed on the exchange, tracking the Hang Seng Index through an Exchange Traded Fund (ETF).

Investment Objective:
The objective is to generate returns that closely mirror the performance of the Hang Seng Index, before expenses. The fund aims to invest in securities in the same proportion as the index, providing investors with exposure to the Hong Kong market. However, there is no guarantee of achieving the scheme’s investment objective.

Nippon India Japan Equity Fund

Scheme Overview:
This is an open-ended equity scheme following a Japan-focused theme, primarily investing in equity and equity-related securities of companies listed on Japan’s stock exchanges.

Investment Objective:
The fund’s primary goal is to offer long-term capital appreciation by investing in Japanese equities. Additionally, the fund seeks to generate consistent returns through investments in Indian debt and money market securities. The objective is ambitious, but no assurance can be given that it will be fully realized.

Nippon India Taiwan Equity Fund

Scheme Overview:
The Nippon India Taiwan Equity Fund follows a Taiwan-focused equity theme, investing in the equity securities of companies listed on Taiwan’s recognized stock exchanges.

Investment Objective:
The primary aim is long-term capital appreciation through Taiwanese equities. The fund also aims to generate stable returns by investing in Indian debt and money market instruments. Similar to other funds, there is no guarantee of achieving these objectives.

Nippon India US Equity Opportunities Fund

Scheme Overview:
An open-ended equity scheme focusing on the U.S. market, this fund primarily invests in equities of companies listed on recognized U.S. stock exchanges.

Investment Objective:
The primary goal is long-term capital growth via investments in U.S. equities. The fund also has a secondary objective of generating consistent returns by investing in Indian debt and money market securities. However, there is no certainty in achieving these goals.

Background on Subscription Suspension and Resumption

New investments in these schemes were initially suspended in February 2022 due to regulatory limits imposed on overseas investments by mutual funds. However, the Securities and Exchange Board of India (SEBI) later allowed mutual funds to resume investments if there was headroom available under the pre-existing overseas investment limits as of February 1, 2022.

With SEBI’s flexibility, Nippon India Mutual Fund has gradually reopened these schemes, and after the last suspension in February 2024, investors can now take advantage of the available headroom.

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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.