New Fund Offer: Nippon India Nifty Pharma ETF – Risks, Benefits, Features, Key Dates

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Updated: June 24, 2021 1:59 PM

Nippon India Nifty Pharma ETF is an Exchange Traded Fund (ETF) that will be listed on NSE and will be investing in stocks of Nifty Pharma Index in the same proportion as the underlying Index.

new fund offerThe NFO opened on June 21, 2021 and if will close on June 28, 2021. Representative image

Nippon India has come up with a new fund offer (NFO) – Nippon India Nifty Pharma ETF. The NFO aims to provide investors who would like to participate in the India growth story by passively investing in a sector-based portfolio of well-known companies as represented by the Nifty Pharma Index. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Nippon India Nifty Pharma ETF is an Exchange Traded Fund (ETF) that will be listed on NSE and will be investing in stocks of Nifty Pharma Index in the same proportion as the underlying Index. The units of Nippon India Nifty Pharma ETF will be listed on National Stock Exchange of India Ltd (NSE). The trading will be as per the normal settlement cycle.

Key dates

The NFO opened on June 21, 2021 and it will close on June 28, 2021.

Minimum application amount during NFO

Rs. 1,000 and in multiples of Re.1 thereafter.

Charges

For the new investor a transaction charge of Rs 150 will be levied per purchase/subscription of Rs 10,000 and above; and

For the existing investor, a transaction charge of Rs 100 shall be levied per purchase/subscription of Rs 10,000 and above.

Transaction charges shall not be deducted if the amount per purchases /subscriptions is less than Rs. 10,000.

Risks

Mutual Funds and securities investments are subject to market risks such as trading volumes, settlement risk, liquidity risk and default risk including the possible loss of principal and there is no assurance or guarantee that the objectives of the Scheme will be achieved.

Past performance of the Sponsor/AMC/Mutual Fund does not guarantee future performance of the scheme.

The Mutual Fund is also not assuring that it will make periodical dividend distributions, though it has every intention of doing so. All dividend distributions are subject to the availability of distributable surplus of the Scheme.

The Scheme proposes to primarily invest in equity and equity-related Securities. It is intended for long-term investors who can accept the risks associated with investing primarily in such Securities.

Equity instruments by nature are volatile and subject to price fluctuations on a daily basis. Hence, Investors in equity and equity-related Securities will be subject to the risks associated with equities, the values of which in general fluctuate in response to the activities of individual companies and general market and economic conditions.

Benefits

The Equity ETF can be easily bought/sold like any other stock on the exchange.

Buying a single unit currently offers a diversification of 10 stocks in the Pharmaceuticals sector and the elimination of non-systematic risks.

The index constituents are available in the public domain on a daily basis by NSE

The ETF’s investment strategy and stock selection is clearly defined, holding stocks as per the underlying Index in the same weightages.

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