Nippon India Mutual Fund has launched a new fund offer (NFO) based on manufacturing theme. This new fund offer nippon India nifty India manufacturing etf and Nippon India Nifty India Manufacturing Index Fund has opened for subscription from August 6 and will be open till 20 August 2025. During this time investors can invest at cheap rates.
This index covers companies with growth with growth like capital goods, autos, metals, healthcare, chemicals. In this, companies of sectors who are associated with manufacturing have been selected. Also, it has been followed by rules like giving minimum share to main sectors like auto and capital goods and maximum weight limit. It is invested in the top 300 companies selected from the universe selected from the NIFTY 100, Nifty Midcap 150 and Nifty Smallcap 50.
Support from government policies
The Indian manufacturing sector is also benefiting from the policies of the government. Through the government’s strong policy support through cheap pay structure, internationally competitive corporate tax rate and PLI, speed power and make in India schemes, industrial investment is coming on a large scale. In the last 10 years, FDI has increased by 69% in the manufacturing sector. As India is entering a new era of growth on the basis of manufacturing, this fund is trying to capitalize on the strong economic situation of the country.
Manufacturers from all over the world are now adopting China-Plus-One strategy and India seems to be taking great advantage of it. This is causing long -term possibilities like domestic demand, change in supply chain and premiumization in the consumer sector. This fund is available in both ETF and Index format. Investors get a chance to invest in the manufacturing sector diversified and low cost, which has complete transparency of the index. ETF provides an intrade liquidity i.e. procurement and sale in the day, while SIP can be done through index funds. This NFO can prove to be a good option for those who carry forward their investment with India’s growth.
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