Nippon India Innovation Fund: The new fund will seek to invest in innovative and disruptive technologies
Nippon Life India Asset Management Limited (NAM India) has launched its first thematic fund – Nippon India Innovation Fund, which is an open-ended equity scheme investing in innovation themes. The fund will seek to invest in innovative and disruptive technologies that may lead to transformation and potentially create future trendsetters.
Read More: Sebi categorises dues worth Rs 73,287 crore as ‘difficult to recover’
In a statement, NAM India said the innovation fund will predominantly invest in a diversified portfolio of companies that are driving innovation across themes like fintech, speciality chemicals, pharma, auto and auto ancillaries, internet-based businesses, MNCs etc.
The fund will invest at least 80% of its assets in innovative companies that have the potential to disrupt their industries and create significant value for investors in the long term.
Nippon India Innovation Fund will have the flexibility to invest across market caps and sectors. According to the statement, the fund’s flexibility will allow it to identify better investment opportunities by identifying companies ahead of the curve in new innovation, technologies or business models. The fund may be well-positioned to capture companies that have the potential for significant growth.
Read More: Eligibility To Sum Assured On Maturity, All You Need To Know About LIC Aadhaar Shila Plan
New Fund Offer dates
The NFO opened on 9th August 2023 and closes on 23rd August 2023. The minimum investment amount required during NFO is Rs 500 and in multiples of Re 1 thereafter.
The performance of the Scheme shall be benchmarked against Nifty 500 TRI.
Key features of Nippon India Innovation Fund
- Invests in innovative companies across sectors
- Minimum 80% of assets in innovative companies
- Flexibility to invest across market caps and sectors
- Focus on High Quality businesses
- Growth bias
- Focus on companies taking advantage of early trend
- Concentrated portfolio
- Significant focus on innovation
- Rigorous investment process
Read More: Review of LIC role in pension schemes soon
“Over the next 20 years India is likely to witness significant investment in Innovation and R&D (Research & Development). The need for creating differentiation through innovation is a key growth driver for the long-term success of any business. Participating in this space is critical as Innovation led transformation and transition may offer growth possibilities across multiple segments. Hence, we are launching Nippon India Innovation Fund to capture some of these potential opportunities,” said Sailesh Raj Bhan, CIO – Equity Investments, Nippon India Mutual Fund.
“However, we also need to understand that such themes may have higher gestation periods as not all innovation will be successful and attempt to manage the risks through adequate diversification across sectors,” he added.
Disclaimer: The above content is for informational purposes only, based on a press release by Nippon India Mutual Fund. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.
