‘Nippon India Innovation Fund’, The open-ended thematic fund will invest in a diversified portfolio of companies across themes, such as fintech, specialty chemicals and pharma, auto and auto ancillaries, Internet-based businesses, and multinational companies (MNCs), among others. The performance of the scheme shall be benchmarked against Nifty 500 TRI.
The NFO will be open for subscription from August 9th, 2023 and will end on August 23rd, 2023. Within five Business Days following the date of allotment, the Schemes will reopen for continuous sale and repurchase. Subscriptions can be made starting at Rs. 500 and in multiples of Rs. 1/-. Both a Regular Plan and a Direct Plan are available.
About Nippon India Mutual Fund
Nippon India Mutual Fund stands as a prominent Asset Management Company in India. Established in June 1995 under the name Reliance Mutual Fund, it originated as a collaboration between India’s Reliance Capital and Japan’s Nippon Life Insurance company. In 2019, Nippon acquired Reliance’s stake, leading to the fund house’s renaming to Nippon India Mutual Fund.
Nippon Mutual Funds effectively manage assets totaling Rs.2,07,288 crores. Their comprehensive portfolio encompasses 52 equity, 266 debt, and 40 balanced funds. Sundeep Sikka guides the company as its CEO. Functioning as an investment management firm, Nippon Life India Asset Management Limited offers a spectrum of services, including portfolio management, mutual fund investment, financial planning, and advisory services, catering to individuals, institutions, trusts, and private funds.
Nippon India Innovation Fund – NFO Detail
| Type of Offer | NFO (New Fund Offer) |
| Fund House | Nippon India Mutual Fund |
| Name of the Fund | Nippon India Innovation Fund |
| Type of Scheme | Open-ended |
| Category of Scheme | Equity – sectoral/thematic |
| NFO Starts | 07-August-2023 |
| NFO Ends | 23-August-2023 |
| NFO Unit Price | Rs 10 per unit |
| Minimum Investment | Rs. 500 |
| Plans | Regular, Direct |
| Options | Growth, IDCW |
| Entry Load | Not Applicable |
| Exit Load | 1% |
| Investment Manager | Nippon Life India Asset Management Limited (NAM India) |
| Fund Manager | Mr. Vinay Sharma, Ms. Kinjal Desai |
Nippon India Innovation Fund NFO – Scheme Objective
The investment objective of Nippon India Innovation Fund is to provide long term capital appreciation to investors by primarily investing in equity and equity related securities of companies seeking to benefit from innovation i.e companies that invest in l innovation, research and development, new product development or new platforms to enhance their business and gain share in their respective sectors.
Nippon India Innovation Fund NFO – Who Can Invest?
This product is suitable for investors who are seeking*:
- Long term capital appreciation.
- Investment in equity and equity related securities of companies adopting innovation themes.
How Will the Scheme Allocate Its Asset
- 80-100% in Equity and Equity related Instruments of companies adopting innovation themes.
- 0-20% in Debt & Money Market Instruments.
Where Will the Scheme Invest?
The scheme will predominantly invest in equity and equity related securities of companies seeking to benefit from innovation i.e companies that invest in innovation, research and development, new product development or new platforms to enhance their business and gain share in their respective sectors. The Scheme may also invest a certain proportion of its corpus in debt and money market securities of India. The fund may invest in:
- Equity and equity related securities are such instruments like Convertible bonds and debentures and warrants carrying the right to obtain equity shares and derivative instruments.
- ADRs/ GDRs issued by Indian companies, subject to guidelines issued by RBI/ SEBI.
- Foreign securities in accordance with SEBI Guidelines.
- Money market instruments permitted by SEBI/RBI
- Open-ended Liquid Schemes registered with SEBI or schemes that invest predominantly in money market instruments / securities.
- Commercial Paper (CP) (listed), Certificate of Deposits (CD), Treasury Bills, Bills Rediscounting, Tri-party Repo/Reverse Repo (including repo in corporate bonds).
- The scheme shall not invest in unlisted debt instruments including commercial papers (CPs), other than (a) government securities, (b) other money market instruments and (c) derivative products such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc. which are used by mutual funds for hedging.
- Corporate Bonds include all debt instruments issued by entities such as Banks, Public Sector Undertakings, Government Agencies and other Statutory Bodies, Municipal Corporations, body corporate, companies, trusts/ Special Purpose Vehicles etc and would exclude investments in Government Securities issued by Central and State Government.
- Investment in Government securities issued by Central and/or State Government to the extent of SEBI prescribed limits. Such securities may be:
(i) Supported by the ability to borrow from the Treasury or
(ii) Supported by Sovereign guarantee or the State Government or
(iii) Supported by Government of India/ State Government in some other way
- Securities issued by any government agencies, quasi-government or statutory bodies, Public Sector Undertakings, which may or may not be guaranteed or supported by the Central Government or any state government (including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).
- Non-convertible securities as well as nonconvertible portion of convertible securities,such as debentures, coupon bearing bonds, zero 30 coupon bonds, deep discount bonds, Mibor-linked or other floating rate instruments, premium notes and other debt securities or obligations of public sector undertakings, banks, financial institutions, corporations, companies and other bodies corporate as may be permitted by SEBI/ RBI from time to time.
- Derivatives like Interest Rate Swaps, Forward Rate Agreements, Stock/Index Futures, Stock/Index Options (Including covered calls) and such other derivative instruments as permitted by RBI/SEBI.
- Fund may use Interest Rate Futures (IRF) to create an imperfect hedge/ proper hedge from time to time as per SEBI regulations.
- Any other debt and money market instruments that may be available and allowed/permitted by RBI/ SEBI from time to time
- All investments in overseas securities will be governed based on SEBI guidelines issued from time to time. The Scheme may invest in various types of Foreign Securities including, but not limited to, any of the following:
(i) Foreign debt securities (non-convertible) in the countries with fully convertible currencies.
(ii) Overseas short term as well as long term debt instruments with rating not below investment grade by accredited/registered credit rating agencies.
(iii) Overseas Money market instruments rated not below investment grade
- The Fund may also enter into “Repo”, hedging or such other transactions as may be allowed to Mutual Funds from time to time. Investments in Tri-Party Repo would be as per the RBI circular dated July 24, 2018.Investments in Repo in corporate debt securities would be in line with SEBI circular dated November 11, 2011, SEBI Circular dated June 8, 2023 and RBI circular dated July 24, 2018 and shall be made basis the policy approved by the Board of NAM INDIA and NLITL. The significant features are as follows:
i. As specified in the SEBI Circular dated November 15, 2012, the base of eligible securities for mutual funds to participate in repo in
corporate debt securities are
a. Listed AA and above rated corporate debt securities.
b. Commercial Papers (CPs) and Certificate of Deposits (CDs)
ii. Category of counterparty & Credit rating of counterparty NIMF schemes shall enter in lending via Repo only with Investment Grade
counterparties.
iii. The Gross exposure of the scheme to repo transactions in corporate debt securities shall not be more than 10% of the net asset of the
scheme
Nippon India Innovation Fund NFO – SID (Scheme Information Document)
Please click here to read the SID (Scheme Information Document) of this NFO scheme.
How to Invest?
Visit this page on the AMC website for further detail and investment.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.
