Invesco Mutual Fund has filed the draft Scheme Information Document for the Invesco India Nifty Bank Index Fund. The scheme is proposed as an open-ended index fund that will track the Nifty Bank Total Return Index (TRI).
It will follow a passive approach, investing in the same stocks and weightings as the underlying index.
The Nifty Bank Index includes a small set of banking stocks listed on the NSE. It is reviewed 2 times a year, with changes typically implemented in January and July.
The draft states that 95% to 100% of the portfolio will be invested in equity and equity-related instruments that form part of the index. The remaining 0% to 5% may be held in debt and money market instruments.
The scheme may also use equity derivatives, up to 20% of the equity exposure. This is mainly for rebalancing or when index securities are not immediately available.
Certain instruments, including unlisted debt and overseas securities, are excluded.
The minimum application amount is ₹100 during the New Fund Offer (NFO) and on an ongoing basis. Additional investments can be made in similar increments.
An exit load of 0.20% applies if units are redeemed within 7 days of allotment. No exit load is charged after that period. Redemption requests are generally processed within 3 working days.
The total expense ratio is capped at 1.00% of daily net assets, with a provision to charge up to an additional 0.05% as allowed under regulations.
The Net Asset Value will be calculated on a daily basis by dividing net assets by the number of outstanding units. NAV details will be disclosed on each business day.
The scheme’s performance will be linked to the banking sector. Movements in interest rates, economic conditions, and regulatory changes may affect returns. The limited number of stocks in the index may also lead to concentration risk.
The draft sets out the structure, allocation, and cost limits of the scheme. Additional details, including final timelines, are expected closer to 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.
Published on: Apr 8, 2026, 1:20 PM IST
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