Navi Mutual Fund launches US Total Stock Market FOF

Navi Mutual Fund has launched the Navi US Total Stock Market Fund of Fund. The fund will invest in Vanguard Total Stock Market ETF, which is one of the largest passively managed US-based ETFs. The Fund’s Expense Ratio will be 0.06% per annum. However, the fund house has said that the expense ratio is not permanent and is subject to change from time to time within the overall permissible expense ratio of 1.00%. The NFO will open for subscription on February 4 and will close on Feb 18. .

Vanguard Total Stock Market ETF (VTI) tracks the CRSP US Total Market Index which comprises 4000+ stocks, representing nearly 100% of the investable equity US Market. Though the fund invests in US equities of all sizes – large, mid, small and micro capitalization, it has a considerable allocation to the big companies such as Apple, Microsoft, Alphabet, Amazon, Facebook and Tesla.

CRSP US Total Market Index, the benchmark for the Vanguard ETF, is a well diversified, comprehensive and broader index having exposure to multiple sectors, the fund houses said. The broad-based US index has provided an annualised return (in INR terms) of 28.15%, 20.11% and 20.27% over the last 1 year, 5 years and 10 years respectively (as of Dec 31, 2021).

Sachin Bansal, Co-founder of the Navi Group said, “Navi is excited to be able to give Indian investors an opportunity to invest in Vanguard, a global pioneer of the low-cost index fund. The Navi US Total Stock Market Fund of Fund will, for the first time, give Indian retail investors a convenient and low-cost means to participate in the entire US stock market. Our goal is to keep providing new investment opportunities to investors at the best possible cost.”

This is the third passively-managed scheme launched by Navi Mutual Fund this year. It launched the Navi Nifty Next 50 Index Fund and Navi Nifty Bank Index Fund in January, both of which are low cost index funds. The fund house plans to launch three more funds by the end of March.


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