Fund Outlook – Navi Nifty India Manufacturing Index Fund<\/strong><\/p>\n\n\n\nNavi Nifty India Manufacturing Index Fund will seek to replicate the Nifty India Manufacturing Index, which tracks the performance of manufacturers among the top 300 companies in India.<\/p>\n\n\n\n
The scheme will endeavour to simplify investing in the Indian manufacturing sector. It will provide easy and cost-effective access to the entire manufacturing landscape by investing in the underlying Nifty India Manufacturing index which is well diversified across various manufacturing segments and market caps.<\/p>\n\n\n\n
The scheme allows investors to participate in the growth of key manufacturing segments, which are the government’s focus areas through various initiatives like the Production Linked Incentive (PLI) scheme. Investors may generate optimal returns by investing in emerging spaces like Electric Vehicles, Defense electronics, battery tech, etc.<\/p>\n\n\n\n
Although the scheme provides a relatively low-cost and rule-based investment approach to exposure to manufacturing themes, it is still prone to high market risks. Being a sector-oriented Index Fund, the Scheme will focus on investing in companies only under the manufacturing sector, which creates concentration risk. In addition, the persistent repercussions of the Russia-Ukraine conflict, rising interest rates, and spiralling inflation may pose a significant risk to economic growth.<\/p>\n\n\n\n
While India has the potential to be the next manufacturing hub of the world, the right macro-economic environment is necessary. The manufacturing sector may remain under pressure and witness higher volatility in the near term. These factors, among many others, could have a bearing on the underlying index’s performance and its top constituents and may affect the scheme’s portfolio negatively if the sector moves out of favour.<\/p>\n\n\n\n
The fortune of the Navi Nifty India Manufacturing Index Fund will depend on the performance of the underlying index. Thus, the scheme is a very high-risk investment proposition and suitable for investors possessing a decent understanding of the manufacturing segment and having a time horizon of at least 5-7 years.<\/p>\n\n\n\n
This article first appeared on PersonalFN\u00a0here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Manufacturing is one of the high-growth sectors in India buoyed by the government’s constant support to strengthen the sector. The statement noted that the ‘Make in India’ initiative, Production Linked Incentive (PLI) Scheme and the Skill India initiative are a few of the programmes aiming to put India on the world map as a global manufacturing…<\/p>\n","protected":false},"author":7,"featured_media":4628,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4627"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=4627"}],"version-history":[{"count":1,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4627\/revisions"}],"predecessor-version":[{"id":4629,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/4627\/revisions\/4629"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/4628"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=4627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=4627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=4627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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