Navi MF set to bring Vanguard Funds to India
- ByAyushi Ray | September 1, 2021
Flipkart co-founder Sachin Bansal’s Navi MF set to bring Vanguard Funds to India. They have filed papers with the markets regulator seeking approval for a ‘Total US Stock Market’ fund-of-funds. The proposed scheme will feed into Vanguard Total Stock Market Index Fund ETF. Vanguard, founded by John Bogle, is a pioneer in passive investing in the US and the second-largest money manager after Blackrock. Vanguard Total Stock Market Index Fund has an expense ratio of just 0.03% and has delivered annual average returns of 44.33%, 18.75% and 14.7% CAGR over the past 1, 3 and 10 years in dollar terms.
Under the Securities and Exchange Board of India (Sebi) rules, the expense ratio of the Indian fund house cannot be more than twice the underlying fund. This would cap the expense ratio of the Navi Total US Stock Market FoF to just 0.09%. Bansal’s Navi Mutual Fund also focuses on passive investing. Alongside its Total US Stock Market filing, the fund house also filed for a NASDAQ 100 FoF. However, this scheme will invest in other asset managers in the US.
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