Upcoming NFO: Invesco Mutual Fund Files Draft with SEBI for Nifty Chemical Index Fund

Invesco Mutual Fund has filed the draft Scheme Information Document (SID) for the Invesco India Nifty Chemical Index Fund, an open-ended index fund that will track the Nifty Chemical Index.  

The scheme is structured as a passive fund and will invest in the same companies and in broadly the same proportion as the benchmark index, subject to tracking error.  

The scheme will reopen for continuous purchase and redemption within 5 business days from the date of allotment.  

Investment Strategy and Allocation 

According to the draft document, the scheme will invest 95% to 100% of its assets in equity and equity-related securities that are part of the Nifty Chemical Index. The remaining 0% to 5% may be invested in money market instruments and other liquid assets to meet liquidity requirements.  

The fund may also use equity derivatives for portfolio rebalancing, index changes and corporate actions where permitted under SEBI regulations.  

Benchmark Composition 

The benchmark for the scheme will be the Nifty Chemical Index TRI. The index comprises the 20 largest chemical sector companies selected from the Nifty 500 based on six-month average free-float market capitalisation.  

Preference is given to companies available for trading in the derivatives segment, while constituent weights are assigned using free-float market capitalisation. The portfolio will be rebalanced whenever there are changes in the underlying index.  

Key Features of the Scheme 

The New Fund Offer (NFO) units will be issued at ₹10 each, with a minimum investment amount of ₹100. Investors can choose between Regular and Direct plans under the Growth or IDCW options.  

The draft document states that the scheme will not levy an exit load. It will also offer investment facilities including SIP, STP, SWP, ASBA, and online transactions.  

Other Details 

The proposed scheme will be managed by Abhisek Bahinipati, who has more than 19 years of experience in trading and investments.  

The estimated base expense ratio is capped at 0.90% of daily net assets, excluding statutory charges and transaction costs.  

As the scheme has not yet been launched, it does not have a performance history or portfolio holdings.  

Read More: Aditya Birla Sun Life Mutual Fund Files Draft with SEBI for Equity Long-Short Fund via Apex SIF! 

Conclusion 

The proposed fund is structured as an open-ended index scheme linked to the Nifty Chemical Index. Its investment framework, expenses and operational features are detailed in the draft Scheme Information Document. 

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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.