All You Need To Know About The Newly Launched - Navi US Total Stock Market FoF

Navi US Total Stock Market Fund of Funds was launched on February 4 by the Navi Mutual Fund (MF). Navi Mutual Fund is backed by Sachin Bansal, the ex-co-founder of Flipkart. The Fund's issue date is February 4, 2022, and the issue closing date is February 18, 2022. During the initial subscription period of the New Fund Offer (NFO), the fund's NAV will stay at Rs. 10. Following this period, the fund's units will be allocated on February 25, 2022. Furthermore, because it is an open-ended plan, it will be open for new subscriptions on February 28, 2022, at the NAV in effect at the time.

Details

Issue Open:	04 February 2022
Issue Close:	18 February 2022
Category:	Equity: International
Type:	Open-ended
Min. Investment	Rs 500
Plans:	Growth
Lock-in Period	Not Applicable
Exit Load (%):	0
Riskometer:	Very High
Benchmark:	CRSP US Total Market

It is Navi Mutual Fund's first overseas fund. The fund aims for long-term capital appreciation by investing in Schwab Total Stock Market Index Fund units (SWTSX) or Vanguard Total Stock Market ETF (VTI). The Vanguard Group is one of the world's largest providers of mutual funds and exchange-traded funds (ETFs).

SEBI Overseas Investment Restriction- Will it impact the Fund?

Mutual funds that feed into actively managed overseas funds have now ceased flows due to exceeding a Securities and Exchange Board of India (SEBI) cap of $7 billion on such assets. On the other hand, the separate $1 billion caps for investing in abroad-listed exchange-traded funds (ETFs) remain open. SEBI guidelines allow $300 million (Rs 2,250 crore) every fund house to invest in overseas ETFs under the total ceiling of $1 billion.

There are some funds that can participate in overseas markets since they invest in global ETFs, but such funds are few and far between. The Navi US Total Stock Market Fund of Fund (FoF) invests in an ETF, it is subject to a different maximum of USD 1 billion, which has yet to be reached.