Nippon Life India launches Flexicap Fund to invest in a Diversified Portfolio


Recently, Nippon Life India Asset Management announced that it will launch a flexicap fund that will invest in a diversified portfolio across large-, mid-, and small-caps based on market view and relative attractiveness.

The new fund offer (NFO) will open on 26 July and close on 9 August, and the reserve will be benchmarked against the Nifty 500 total return index. The minimum investment required is INR 500 and in the multiples of INR 1, thereafter.

As per the fund house, the schemes will effort to generate a dominant complete bottom-up stock selection and a suitable provision method to categorize chance in hypothetically high development themes.

Nippon India Flexi Cap Fund will be a guise to exploit the comparative constancy of large-caps through reasonable allocations to established leaders, along with an optimal mix of the growth opportunities offered by mid-and small-cap segments.

The fund will have a bias near domestic recovery themes with investments across key areas such as beneficiaries of consolidation due to technology or regulation, ‘back to normal’ or business normalization, new business models which thrive on disruption, China plus one or import substitution, etc.

Gunwani, states, “A flexicap strategy can dynamically adapt to varied market scenarios and thus has the potential to outperform across market cycles. The current macro-economic conditions are favorable for the flexicap category as the global economy is expected to grow faster than estimated, capex cycle picking up with lower interest rates and liquidity support and earnings are also likely to improve as growth momentum picks up.”

In terms of exodus load, 10 percent of the units chosen will be converted without any exit load, on or before the conclusion of 12 months from the date of a portion of units. While any recovery in excess of such limit in the first 12 months from the date of allotment shall be subject to 1 percent exit load if redeemed or switched on or before completion of 12 months from the date of allotment of units, and nil, thereafter. Notably, a flexicap fund recently closed by ICICI Prudential had garnered a record INR 10,200 crore through its NFO.