Nippon India Mutual Fund Filed Draft for the Nifty India Manufacturing ETF

Nippon India Mutual Fund has proposed a new exchange-traded fund (ETF) named Nippon India Nifty India Manufacturing ETF. It is structured as an open-ended scheme that will mirror the Nifty India Manufacturing Index. Units will be priced at ₹10 during the New Fund Offer (NFO) phase.

Index and Investment Approach

The ETF will aim to replicate the performance of the Nifty India Manufacturing TRI. It will invest 95%-100% of its assets in index constituents. Up to 5% may be held in cash equivalents or money market instruments. There will be no active stock selection.

The units will be listed on both the BSE and NSE. Investors can trade units on the exchange like stocks. Large investors and authorised participants can transact directly with the fund in creation unit lots of 1,00,000 units or more.

Retail investors can subscribe to the fund during NFO with a minimum amount of ₹1,000. Large investors must transact in lots with a minimum execution value of ₹25 crore. Redemptions by non-market participants are allowed under specific conditions.

NAV and Disclosure

NAV will be calculated and published daily on the AMC and AMFI websites by 11:00 PM. Indicative NAV (iNAV) will be updated during market hours. The fund will also disclose portfolio data as required by SEBI regulations.

The scheme’s total expense ratio is capped at 1% of daily net assets. There is no exit load. Investors will bear brokerage and bid-ask spreads while trading on exchanges. No commissions will be charged by the AMC.

The fund may use equity derivatives for index tracking or rebalancing, with a limit of up to 20% of total assets. Securities lending will be allowed up to 15% of net assets, but capped at 5% per counterparty.

Read More: Best Mutual Funds for Lumpsum Investment for July 2025 Based on 3Y and 5Y CAGR!

Conclusion

The ETF is a passive instrument offering exposure to the Nifty India Manufacturing Index. It follows standard regulatory practices and will be available for investment post SEBI approval and listing.

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.