Nippon India Mutual Fund has introduced two new fund offers (NFOs) that focus on India’s growing manufacturing sector:
Nippon India Nifty India Manufacturing ETF
Nippon India Nifty India Manufacturing Index Fund
Both NFOs are now open for subscription, and investors can apply until August 20.
Why Manufacturing? A Sector on the Rise
These funds are being launched at a time when India’s manufacturing industry is growing rapidly.
Major global companies like Apple are shifting their production to India, helping the country become a global hub for manufacturing.
Estimates suggest that India’s manufacturing sector could cross $1 trillion by next year. Currently, it makes up 17% of India’s GDP, and this share is expected to grow further.
How Will the Funds Invest?
The money collected from these funds will be invested in companies listed under the Nifty India Manufacturing Index. This index includes firms from sectors such as:
Capital Goods
Automobiles
Metals
Healthcare
Chemicals
Investments will be spread across the top 300 companies from the Nifty 100, Nifty Midcap 150, and Nifty Smallcap 50 indices.
There are rules in place to make sure that sectors like auto and capital goods get a minimum investment and to prevent over-investment in any single sector.
Important Details for Investors
Fund Manager: Himanshu Mange
Minimum Investment: ₹1,000 (and then in multiples of ₹1)
These funds are available in two formats — ETF and Index Fund — and offer:
Low-cost and diversified investment
Transparency by tracking an index
Low tracking error
Intraday trading (ETF)
SIP option (Index Fund)
Strong Economic Support and Global Advantage
India’s economy is expected to grow at over 7%, backed by a young workforce (average age: 28.2 years) and 68% of the population in the working-age group.
Government initiatives like PLI, Gati Shakti, and Make in India are encouraging more industrial investment.
Over the last 10 years, FDI in manufacturing has gone up by 69%.
India is also gaining from the global China-plus-one strategy, where companies are shifting manufacturing away from China.
This trend is boosting India’s position and makes these Nippon India funds a timely investment opportunity.
