Introduction:
Angel One Mutual Fund has launched India’s first-ever Nifty Total Market ETF and Index Fund. These New Fund Offers (NFOs) aim to provide investors with broad-based exposure to the Indian equity market. The NFO period is open until February 21, 2025, allowing investors to participate with a minimum investment of ₹1,000. Notably, there is no exit load applicable, ensuring flexibility for investors.
Key Highlights
- Fund Name: Angel One Nifty Total Market ETF & Angel One Nifty Total Market Index Fund
- NFO Period: Open until February 21, 2025
- Minimum Investment: ₹1,000
- Exit Load: None
- ETF Listing: NSE, within five working days post allotment
Understanding the Nifty Total Market ETF and Index Fund
The Nifty Total Market Index captures approximately 93% of India’s total market capitalization, consisting of 750 stocks from the Nifty 500 and Nifty Microcap 250 indices. The composition of the index is:
- 60% Large Caps
- 19% Mid Caps
- 10% Small Caps
- 4% Micro Caps
With representation across 22 sectors, the index reduces sector concentration risk, offering diversified exposure to various market segments.
Performance Insights
The Nifty Total Market Index has historically outperformed major benchmark indices:
- 1-Year CAGR: 12.59% (vs. 9.52% for Nifty 50, 12.30% for Nifty 500)
- 10-Year CAGR: 13.41% (vs. 11.73% for Nifty 50, 13.15% for Nifty 500)
This long-term outperformance makes it an attractive choice for investors looking for broad market exposure.
Investment Benefits For Nifty Total Market ETF and Index Fund
Angel One’s new funds allow investors to diversify across market caps and sectors with a single investment. Key benefits include:
- Broad Market Exposure: Tracks 93% of India’s market cap
- Diversification: Reduces risks associated with sector-specific investments
- No Exit Load: Provides liquidity and flexibility
Trading & Fund Management
The ETF units will be tradable on NSE, offering liquidity for investors. Additionally, direct redemption with the fund house will be available in minimum lot sizes of 35 lakh units. The funds will be managed by experienced fund managers Mehul Dama and Kewal Shah, ensuring alignment with the index’s performance.
Conclusion
Angel One’s launch of the Nifty Total Market ETF and Index Fund marks a significant milestone in India’s mutual fund industry. With sector diversification, historical outperformance, and a broad market approach, these funds provide a unique opportunity for investors. The NFO is open until February 21, 2025, making it an ideal time to explore this innovative investment avenue.
Disclaimer
Bharat Stock Updates does not provide buy or sell recommendations. Investors are advised to conduct their own research and consult financial advisors before making investment decisions.
