Axis Mutual Fund, an asset management firm, announced on Monday the introduction of a new fund offer (NFO) for a consumption exchange-traded fund (ETF) that will invest in a basket of Nifty India Consumption index stocks with the goal of creating long-term wealth.
SBI Mutual Fund introduced an exchange-traded fund (ETF) based on the Nifty India Consumption Index in July.
Offer for a New Fund On August 30, 2021, it will open. The deadline to apply for the new fund is September 13, 2021. Within five business days of the date of allotment, the scheme reopens.
To produce pre-tax returns that closely resemble the total returns of the NIFTY India Consumption Index, allowing for tracking errors. However, there is no assurance or guarantee that the scheme's investment goal will be met.
The Nifty India Consumption index measures the performance of a group of companies that represent the domestic consumption sector, including consumer non-durables, healthcare, auto, telecom services, pharmaceuticals, hotels, and media & entertainment, among others. The index is made up of 30 companies that are publicly traded on the New York Stock Exchange (NSE).
Consumer goods has the most sectoral representation in The Nifty India Consumption index, at 58.01 percent, followed by automobiles at 18.32 percent and consumer services at 9.13 percent.
During the NFO period, the minimum investment in Axis Consumption ETF is Rs5,000, with further investments in multiples of Rs 1 and no exit load.
Passive investing is the most basic method of investing in mutual funds, and the goal of this strategy is to match, not outperform the index.
An index fund or an index exchange-traded fund are two popular strategies to invest passively in the equity market (ETF). Both are essentially indexes.
Invests in stocks that make up the Nifty India Consumption Index, giving you quick access to India's biggest consumer brands.
ETFs are a low-cost, hassle-free, and tradeable investment vehicle.
Ideal for people looking to build long-term wealth.