Nippon India Mutual Fund Filed a Draft for Nifty India Manufacturing Index Fund

Nippon India Mutual Fund has filed a draft for the Nippon India Nifty India Manufacturing Index Fund, an open-ended index fund designed to track the Nifty India Manufacturing TRI. The fund aims to mirror the index’s performance before expenses, offering passive exposure to listed manufacturing companies in India.

Fund Structure and Investment Plan

The fund will invest at least 95% of its assets in stocks that are part of the Nifty India Manufacturing Index. The remaining portion may be held in cash or money market instruments. Derivatives may be used for hedging and rebalancing, limited to 20% of the equity portion.

NFO Details

The New Fund Offer (NFO) is priced at ₹10 per unit, with a minimum investment of ₹1,000. There is no exit load, and the fund will be managed by Mr. Jitendra Tolani. All redemptions will be processed within T+3 days, and NAVs will be published daily by 11 PM on the AMC and AMFI websites.

Index Composition and Weightage Rules

As of June 30, 2025, the Nifty India Manufacturing Index includes 76 companies. Top constituents by weight include Reliance Industries (5.04%), Sun Pharma (4.88%), Mahindra & Mahindra (4.88%), Maruti Suzuki (4.40%), and Bharat Electronics (3.94%). Sector rules ensure a minimum 20% weight each to Automobiles and Capital Goods, with a 5% cap per stock.

Regulatory Compliance and Expense Cap

The total expense ratio is capped at 1%, in line with SEBI guidelines. No investment management fees apply to sponsor contributions. The scheme will not invest in securitised debt, REITs, InvITs, AT1/AT2 bonds, or overseas securities. It complies with the clauses of SEBI’s master circular dated June 27, 2024.

During and after the NFO, investors can opt for SIP, STP, SWP, and other services. ASBA, auto-switch, and ETF-to-index switch options are available for ease of investment and portfolio rebalancing.

Read More: Mutual Fund KYC Just Got Simpler: Now Complete It at Your Nearby Post Office!

Conclusion

The fund offers index-based exposure to manufacturing stocks, with a structured investment and redemption process. Investors should track index performance and NAV trends post-launch.

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 the related documents carefully before investing.