Sachin Bansal begins mutual fund journey with launch of cheapest index fund – Navi Nifty 50 Index Fund
Navi Mutual Fund has announced the launch of new fund offer of Navi Nifty 50 Index Fund. The fund house is a part of NAVI group of businesses backed by Sachin Bansal – founder of Flipkart.
The new fund offer will launch on July 3, 2021. The scheme aims to offer returns in line with that offered by Nifty 50 index by mimicking portfolio of Nifty 50 index, before costs and taxes.
To attract investors, the fund house has kept the expense ratio of the direct plan at six basis points (0.06%). This is the lowest expense ratio of any index fund. At a time when other fund houses have increased the expense ratio of their index funds, this is a bold move from the new entrant in the fund management industry.
Saurabh Jain, MD and CEO, Navi AMC Limited said, “Investors benefit with low expense ratio while still providing the same quality professional portfolio management through index funds.”
Passive funds have gained traction across the world and India is no exception to this. However, Indian experts question if lowering the expense ratio is the only way to attract money.
Only time will tell if the fund house manages to attract long term money by offering long term investment solutions at attractive costs.
The new fund offer will close on July 12, 2021.