Nippon India launches Two New Manufacturing Funds

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Nippon India Mutual Fund has launched two new fund offers (NFOs), both focused on the manufacturing sector. These are:

Nippon India Nifty India Manufacturing ETF

Nippon India Nifty India Manufacturing Index Fund

Both NFOs are now open for subscription and applications can be made till August 20.

Why Focus on Manufacturing?

These funds come at a time when India’s manufacturing sector is showing strong growth.

Big global companies like Apple are moving their production to India, helping the country become a global manufacturing hub.

According to estimates, India’s manufacturing sector could cross $1 trillion by next year. Currently, manufacturing contributes 17% to India’s GDP, and this share is expected to rise.

Where Will the Money Be Invested?

The NFOs will track the Nifty India Manufacturing Index, which includes companies from sectors like:

Capital Goods

Automobiles

Metals

Healthcare

Chemicals

Investments are made in the top 300 companies from the Nifty 100, Nifty Midcap 150, and Nifty Smallcap 50 indices.

There are rules to ensure that sectors like auto and capital goods receive a minimum allocation, while limits are set to avoid too much weight on any one sector.

Key Details for Investors

Fund Manager: Himanshu Mange

Minimum Investment: ₹1,000 (and then in multiples of ₹1)

These funds are available in ETF and Index Fund formats, offering:

Low-cost diversified investment

Transparency through index tracking

Low tracking error

Intraday trading with ETFs

SIP option with index funds

Strong Economic Support

India is expected to grow at over 7%, driven by manufacturing. With a young workforce (average age 28.2 years)

and 68% of people in the working-age group, the economic outlook is strong.

Government schemes like PLI, Gati Shakti, and Make in India are boosting industrial investment. In the past 10 years, FDI in manufacturing has increased by 69%.

Advantage of China-Plus-One Strategy

As global manufacturers reduce their reliance on China, India is benefiting from the China-plus-one strategy.

This shift is expected to further boost the Indian manufacturing sector, making these Nippon India funds a timely opportunity for investors.

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