January 27, 2024
mayank
Nippon India Nifty IT Index Fund details, Fund Portfolio, Fund Returns, Peer Comparison, Mutual Fund Guidance @chanakyamfguidance
Table of Contents:
- NFO Open date, Close date
- NFO Investment Strategy
- NFO Basic Details
- NFO Benchmark Index
- Past Performance of NFO Benchmark Index
- Performance Review of Fund Manager
- Should You Invest in this NFO?
- Invest Online
What is the Nippon India Nifty IT Index Fund Open Date, Close Date?
NFO opens on February 05, 2024
NFO will close on February 16, 2024
What is Fund Investment Strategy?
The scheme seeks to provide investment returns that commensurate to the total returns of the securities as represented by the Nifty IT Index before expenses, subject to tracking errors.
Basic Details
| Fund House | Nippon India Mutual Fund |
| Issue Open | 05 February 2024 |
| Issue Close | 16 February 2024 |
| Type | Open-ended |
| Category | Equity: Sectoral-Technology |
| Min. Investment(Rs) | 1,000 |
| Plans | Growth, IDCW |
| Lock-in Period | NA |
| Exit Load | 0 |
| Riskometer | Very High |
| Benchmark | NIFTY IT TRI |
What is the Benchmark Index of Nippon India Nifty IT Index Fund?
Nifty IT index captures the performance of the Indian IT companies. The Nifty IT Index comprises of 10 companies listed on the National Stock Exchange (NSE).
The Nifty IT index is computed using free float market capitalization method with a base date of Jan 1, 1996 indexed to a base value of 1000 wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. The base value of the index was revised from 1000 to 100 with effect from May 28, 2004.
Nifty IT Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: Nifty IT Total Returns Index.
Portfolio Characteristics
| Methodology | Periodic Capped Free Float |
| No. of Constituents | 10 |
| Launch Date | |
| Base Date | January 01, 1996 |
| Base Value | 1000 |
| Calculation Frequency | Real-Time |
| Index Rebalancing | Semi – Annually |
Past Performance of Benchmark Index
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | 11.74 | 24.08 | 24.08 | 19.72 | 23.32 |
| Total Return | 12.47 | 26.30 | 26.30 | 22.13 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 17.77 | 23.06 | 33.62 |
| Beta (NIFTY 50) | 1.12 | 0.82 | 0.97 |
| Correlation (NIFTY 50) | 0.62 | 0.68 | 0.66 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 29.74 | 7.71 | 2.33 |
Top constituents by weightage
| Company’s Name | Weight(%) |
| Infosys Ltd. | 27.17 |
| Tata Consultancy Services Ltd. | 24.79 |
| HCL Technologies Ltd. | 10.01 |
| Tech Mahindra Ltd. | 9.53 |
| Wipro Ltd. | 7.97 |
| LTIMindtree Ltd. | 6.92 |
| Coforge Ltd. | 4.59 |
| Persistent Systems Ltd. | 4.56 |
| MphasiS Ltd. | 2.73 |
| L&T Technology Services Ltd. | 1.73 |
Performance Review of the Fund Manager of Nippon India Nifty IT Index Fund?
1) Himanshu Mange
Education: Mr. Mange has done B.Com and CA
Experience: Prior to joining Nippon India MF, he has worked with Tata AIA Life Insurance, Pipalia Singhal & Associates, Felix Solutions, Lodha Group and N.B.Gandhi & Co.
Past Performance of his Schemes
| Fund | Nippon India ETF Nifty 100 | It’s Benchmark | Nippon India ETF Nifty 50 BeES | It’s Benchmark |
| 1 Year | 21.16 | 23.63 | 20.62 | 23.63 |
| 3 Year | 15.40 | 16.98 | 15.77 | 16.98 |
| 5 Year | 15.00 | 16.48 | 15.89 | 16.48 |
| 7 Year | 14.02 | 15.47 | 15.17 | 15.47 |
| 10 Year | 13.88 | 15.01 | 14.27 | 15.01 |
Which Company Owns Nippon India Nifty IT Index Fund?
Nippon Life India Asset Management Ltd.
Address: 4th Floor, Tower A, Peninsula Business Park, Ganapatrao Kadam Marg, Lower Parel (W), Mumbai – 400013
Website: https://mf.nipponindiaim.com/
Registrar & Transfer Agent:
KFin Technologies Ltd.
Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad – 500016
Website: http://www.karvymfs.com
Is it good to invest in Nippon India Nifty IT Index Fund?
Guidance for Nippon India Nifty IT Index Fund by Paresh Gordhandas, C.A., Research Analyst.
The Nifty IT Index is the Benchmark Index for the Nippon India Nifty IT Index Fund. Nifty IT Index comprises of 10 companies.
The Nippon India Nifty IT Index Fund can be compared to the Axis Nifty IT Index Fund, ICICI Prudential Nifty IT Index Fund, Axis Nifty IT Index Fund among others. The ICICI Prudential Nifty IT Index Fund has given return of 22.80% in the last one year.
While analyzing a fund/NFO the stock picking skills of the Fund Manager also need to be taken into consideration. We have done a sample comparison of the funds managed by the Fund Manager(FM). You can refer the tables above for the same. If you take a look, you will notice that their performance is not that impressive. However, since this is an Index Fund, the same can be ignored as the Fund will be replicating the Index on which it is based.
Can invest in the Nippon India Nifty IT Index Fund if you have a long term holding period in mind. (More than 2 years)
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