Nippon India Mutual Fund has launched a new index scheme — Nippon India Nifty India Manufacturing Index Fund, now open for subscription from 6th August to 20th August 2025. With a very high-risk profile, this NFO aims to provide investment returns that are commensurate with the total returns of the securities represented by the Nifty India Manufacturing Index, subject to tracking errors.
Key NFO Details
| Details | Information |
| Fund Name | Nippon India Nifty India Manufacturing Index Fund (Direct – Growth) |
| NFO Period | 06 August 2025 to 20 August 2025 |
| Allotment Date | 26 August 2025 |
| Category | Equity – Other Equity Index |
| Risk Level | Very High |
| Fund Type | Open-ended |
| Benchmark | Nifty India Manufacturing TRI |
| Minimum Investment | ₹1,000 (lumpsum), ₹500 (SIP) |
| Exit Load | 0% |
| Short-term capital gains (STCG) | Returns are taxed at 20% if you redeem before 1 year |
| Long-term capital gains (LTCG) | After 1 year, returns above ₹1.25 lakh in a financial year are taxed at 12.5% |
Investment Objective
The scheme seeks to replicate the total returns of the Nifty India Manufacturing Index before expenses, subject to tracking errors.
How Does This Compare with the Category?
| Time Period | Category Avg. Returns (CAGR) |
| 1 Year | -1.25% |
| 3 Years | 9.23% |
| 5 Years | 11.11% |
| 7 Years | 9.84% |
| 10 Years | 9.77% |
| 15 Years | 5.93% |
| Since Inception | 5.95% |
Should You Invest in This NFO?
Investing in an NFO makes sense if:
• You are interested in exposure to India’s manufacturing sector via a passive index fund.
• You are comfortable with very high risk and the volatility associated with sector-specific investments.
• You believe in the long-term growth prospects of the manufacturing sector.
However, NFOs lack historical performance data, so they are best suited for informed and risk-tolerant investors.
Also Read:
- Kotak Nifty Alpha 50 Index Fund NFO: A Factor-Based Passive Investment for 2025
- Bajaj Finserv Equity Savings Fund NFO: A Balanced Investment Approach for 2025
- Motilal Oswal Special Opportunities Fund NFO: A Thematic Approach to Long-Term Growth
- Aditya Birla Sun Life BSE 500 Momentum 50 Index Fund NFO: A New Passive Investment Option for 2025
- Franklin India Multi Asset Allocation Fund NFO: A High-Risk, Diversified Strategy for 2025
About Nippon India Mutual Fund
| Details | Information |
| Total AUM | ₹6,17,875 Cr (as on June 30, 2025) |
| Number of Schemes | 70 |
Some of their top-performing funds include:
| Fund Name | AUM (₹ Cr) | 1Y Return | 5Y CAGR |
| Nippon India Small Cap Fund | 66,602 | -3.52% | 35.54% |
| Nippon India Power & Infra Fund | 7,620 | -6.40% | 31.97% |
| Nippon India Multi Cap Fund | 45,366 | 3.20% | 31.69% |
| Nippon India Growth Mid Cap Fund | 39,066 | 3.90% | 30.77% |
| Nippon India Nifty Smallcap 250 Index Fund | 2,472 | -3.47% | N.A. |
| Nippon India Banking & Financial Services Fund | 7,487 | 12.42% | 26.96% |
Final Thoughts
If you are looking for sector-focused exposure to India’s manufacturing industry, the Nippon India Nifty India Manufacturing Index Fund NFO might be a suitable option.
Before investing, review the scheme document carefully to ensure it aligns with your investment goals and risk profile. For a seamless and guided investing experience, consider investing in mutual funds with Torus Digital.
