Sachin Bansal’s Navi Mutual Fund plans to launch electric vehicles fund
- ByAyushi Ray | September 18, 2021
Sachin Bansal’s Navi Mutual Fund plans to launch electric vehicles fund, official announcements were made on Friday night. Most of the documents were filed for passively managed funds, which are easy to understand and cost-effective, as the fund house seems to be looking to make a place in this category. The fund house has filed papers with SEBI to launch an electric vehicles fund — Navi Electric Vehicles and Driving Technology Fund of Fund (FoF) — an update with the markets regulator showed on Friday. “The investment objective of the scheme is to provide long-term capital appreciation by investing in units of overseas ETFs (exchange-traded funds and/or index funds that invest in electric vehicles and driving technology),” the draft documents showed.
The fund of funds will be benchmarked against the STOXX Global Electric Vehicles & Driving Technology NET Index. Apart from this, the fund house has filed documents for Navi Nifty India Manufacturing Index Fund and two international funds — Navi S&P 500 FoF and Navi Total China Index FoF. Market experts said passive funds have outperformed actively managed funds in the last couple of years, and that is why such funds are gaining traction among investors. Passive funds are also gaining popularity in India because of their low expense ratio, they added.
In an actively managed fund, the fund manager has more involvement in the decision making and is more active in looking after which stocks to buy or sell in its portfolio.
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