Nippon India Mutual Fund Revises Benchmarks for 2 Debt Schemes

Nippon India Mutual Fund has announced changes to the benchmarks for 2 of its fixed horizon funds, effective January 30, 2025. The revision aligns with the fund house’s objective of keeping its benchmarks relevant to evolving market conditions.

What’s Changing?

The affected schemes and their benchmark revisions are as follows:

The modifications introduce a refined classification within the medium to long-duration debt category, which could impact how investors track fund performance against these benchmarks.

Understanding the Impact

Benchmarks serve as a reference point to measure a fund’s returns and risk-adjusted performance. A shift in the benchmark doesn’t alter the fundamental investment objective of the fund but can change how its performance is assessed. The move to A-III indices suggests a possible enhancement in risk assessment parameters.

For investors, these changes could mean minor variations in relative performance tracking. The CRISIL Medium to Long Duration Debt A-III Index and the NIFTY Medium to Long Duration Debt Index A-III may reflect different yield movements compared to their predecessors, as they account for additional market factors.

Should Investors Be Concerned?

Such updates bring out the fund house’s efforts to keep its debt schemes aligned with market dynamics, focusing on benchmarks that continue to represent relevant debt market trends.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.