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

Invesco Mutual Fund has filed the draft Scheme Information Document (SID) for the proposed Invesco India Nifty India Defence Index Fund with SEBI. The proposed scheme is an open-ended index fund that will replicate the Nifty India Defence Index TRI.  

As a passive fund, it will invest in the same securities as the benchmark index and aims to minimise tracking error. The draft states that the scheme will reopen for continuous transactions within five business days of allotment.  

Investment Framework 

The draft proposes that 95% to 100% of the scheme's assets will be invested in equity and equity-related securities that form part of the Nifty India Defence Index. The balance, up to 5%, may be invested in money market instruments and other liquid assets for liquidity purposes.  

The benchmark index includes companies from the Nifty Total Market Index that operate in eligible defence industries or earn at least 10% of their revenue from defence-related business. The maximum weight of a single stock in the index is capped at 20%.  

Investment and Subscription Details 

The scheme will be offered under Regular and Direct plans with Growth and IDCW options. The minimum investment amount has been fixed at ₹100, both during the New Fund Offer (NFO) and after the scheme reopens.  

Units will be available at ₹10 each during the NFO. The offer period will remain open for a minimum of three working days and a maximum of 15 days. The draft also specifies that no exit load will be charged on redemptions.  

Other Provisions 

According to the draft, the funds collected during the NFO are to be invested within 30 business days from the date of allotment in accordance with SEBI regulations. The scheme may use equity derivatives in limited situations, including portfolio rebalancing and index changes.  

It also provides facilities such as Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), Systematic Withdrawal Plans (SWP) and ASBA. Information on the scheme's tracking error, tracking difference and total expense ratio will be disclosed after the launch.  

Read More: NFO Alert: AlphaGrep Mutual Fund Launches Flexi Cap Fund! 

Conclusion 

The draft scheme outlines the proposed investment structure, subscription details and asset allocation for the index fund. The NFO timeline and remaining operational details are yet to be disclosed. 

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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.