The investment objective of the scheme is to achieve return equivalent to Nifty 500 Multicap 50:25:25 Index by investing in stocks companies comprising Nifty 500 Multicap 50:25:25 Index, subject to tracking error. "There is no assurance that the investment objective of the Scheme will be achieved.
The investment objective of the scheme is to achieve return equivalent to Nifty 500 Multicap 50:25:25 Index by investing in stocks of companies comprising the Index. The Scheme endeavors to invest in stocks in proportion to the weightages of these stocks in the Nifty 500 Multicap 50:25:25 Index. The fund will, in general invest a significant part of its corpus in equities; the surplus amount of the fund, not exceeding 5% shall be invested in Cash/Tri-Party Repo, Repo in corporate debt securities & Money Market instruments. The performance of the Scheme may not be commensurate with the performance of the respective benchmark of the Schemes on any given day or over any given period. Such variations are commonly referred to as the tracking error. The Scheme intends to maintain a low tracking error by actively managing the portfolio in line with the index. However, there is no assurance that all such buying and selling activities would necessarily result in benefit for the Fund. The risk control process involves reducing risks through portfolio diversification. This diversification would help achieve the desired level of consistency in returns. The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. There would be regular rebalancing of the portfolio, taking into account the change in weights of stocks in the Index. Navi Nifty 500 Multicap 50:25:25 Index Fund being a passive investment carries lesser risk as compared to active fund management. The portfolio follows the index and therefore the level of stock concentration in the portfolio and its volatility would be the same as that of the index, subject to tracking error. Thus, there is no additional element of volatility or stock concentration on account of fund manager decisions. While these measures are expected to mitigate the above risks to a large extent, there can be no assurance that these risks would be completely eliminated.
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