The new fund offer or NFO of the scheme will open for subscription on August 9 and will close on August 23.
The investment objective of the scheme is to provide returns that, before expenses, match the total returns of the securities represented by the Nifty India Defence Total Return Index, subject to tracking errors.
The scheme will be benchmarked against Nifty India Defence Total Return Index. It will be managed by Haresh Mehta and Pranav Gupta. The scheme will offer regular and direct plans both with growth and IDCW options.
The scheme will allocate 95-100% in equity and equity-related securities constituting the Nifty India Defence Index, and 0-5% in debt and money market instruments (including Cash and Cash Equivalent).
The scheme will follow a passive investment strategy and will invest not less than 95% of its corpus in stocks comprising the underlying index and endeavour to track the benchmark index while minimizing the tracking error. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions in the schemeThe minimum investment for lumpsum investment is Rs 500 and in multiples of Rs 100 thereafter. For monthly and weekly SIP, the minimum investment amount is Rs 500 and in multiples of Re 1 thereafter. An exit load of 0.05% of applicable NAV will be there for redemption/switch-out of units on or before 30 days from the date of allotment. There will be no exit load for redemption / switch-out of units after 30 days from the date of allotment.
The scheme is suitable for investors who are seeking long-term capital growth and want investment in equity and equity-related securities covered by Nifty India Defence Total Return Index, subject to tracking error. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.