The Flipkart co-founder Sachin Bansal-backed Navi Mutual Fund (MF) will be launching its second new fund offer - Navi Nifty Next 50 Index Fund - in first week of January, 2022. Navi MF is proposing to launch it at total expense ratio (TER) of 0.12 percent, which will make it the cheapest in its category.
The Navi Nifty Next 50 Index Fund will mimic the returns of the Nifty Next 50 Index.
The Nifty Next 50 index represents 50 companies from the NIFTY 100 index after excluding the NIFTY 50 companies. Some companies eventually graduate to being a part of the Nifty 50 index. Some Nifty Next 50 companies also get demoted to lower-rung indices.
In July 2021, Navi MF had launched its first NFO - Navi Nifty 50 Index Fund - which was also the cheapest in its category in terms of TER.
Focusing on passive funds
Navi MF has been filing several passive funds with SEBI, including a recent filing of a blockchain fund.
The other funds filed by Navi MF are an electric vehicle fund, a total market index fund that will capture microcap stocks, apart from larg-, mid- and small-cap stocks.
Some of the other funds Navi MF has filed for are Navi Nifty India Manufacturing Index Fund, Navi S&P 500 FoF and Navi Total China Index FoF.
Altogether, the fund house has filed for 19 new schemes so far this year.In a recent interaction with Moneycontrol, Bansal and Navi MF's CEO Saurabh Jain shared their plans for the fund house and how they want to build a fund house focusing on passive fund management.