Nippon India Mutual Fund has launched two new fund offers (NFOs), both focused on the manufacturing sector. These are:
Nippon India Nifty India Manufacturing ETF
Nippon India Nifty India Manufacturing Index Fund
Both NFOs are now open for subscription and applications can be made till August 20.
Why Focus on Manufacturing?
These funds come at a time when India’s manufacturing sector is showing strong growth.
Big global companies like Apple are moving their production to India, helping the country become a global manufacturing hub.
According to estimates, India’s manufacturing sector could cross $1 trillion by next year. Currently, manufacturing contributes 17% to India’s GDP, and this share is expected to rise.
Where Will the Money Be Invested?
The NFOs will track the Nifty India Manufacturing Index, which includes companies from sectors like:
Capital Goods
Automobiles
Metals
Healthcare
Chemicals
Investments are made in the top 300 companies from the Nifty 100, Nifty Midcap 150, and Nifty Smallcap 50 indices.
There are rules to ensure that sectors like auto and capital goods receive a minimum allocation, while limits are set to avoid too much weight on any one sector.
Key Details for Investors
Fund Manager: Himanshu Mange
Minimum Investment: ₹1,000 (and then in multiples of ₹1)
These funds are available in ETF and Index Fund formats, offering:
Low-cost diversified investment
Transparency through index tracking
Low tracking error
Intraday trading with ETFs
SIP option with index funds
Strong Economic Support
India is expected to grow at over 7%, driven by manufacturing. With a young workforce (average age 28.2 years)
and 68% of people in the working-age group, the economic outlook is strong.
Government schemes like PLI, Gati Shakti, and Make in India are boosting industrial investment. In the past 10 years, FDI in manufacturing has increased by 69%.
Advantage of China-Plus-One Strategy
As global manufacturers reduce their reliance on China, India is benefiting from the China-plus-one strategy.
This shift is expected to further boost the Indian manufacturing sector, making these Nippon India funds a timely opportunity for investors.
