Sachin Bansal (Image: Reuters)
Flipkart co-founder Sachin Bansal-backed Navi Mutual Fund (Navi MF) has put several more passively-managed funds in its product pipeline for mutual fund investors.
Now, the fund house has filed for Navi Electric Vehicles and Driving Technology Fund of Fund (FoF) with SEBI.
Also read: Flipkart co-founder Sachin Bansal’s Navi Mutual Fund to launch cheapest index fund
The FoF will aim to track the performance of STOXX Global Electric Vehicles & Driving Technology NET Index, which comprises of companies from that are involved in the production of electric vehicles and assisted driving technologies
To track the index performance, the fund will invest in a combination of exchange-traded funds and index funds or either of these.
Apart from this, Navi MF has filed for a couple of international funds and also filed for Navi Nifty India Manufacturing Index Fund, which will track Nifty India Manufacturing. The Nifty index comprises of companies, which belong to the manufacturing sector.
The international funds include Navi S&P 500 FoF and Navi Total China Index FoF.
In a recent interaction with Moneycontrol, Bansal said, “Our focus is completely on passive funds. Customers understand index funds very easily, we want to sell something where customers can make a decision without advisors. Index funds are more simple. We believe it will scale because it is simple to understand.”
Last month, Navi MF had filed for 10 new funds with SEBI. All these were also passively-managed funds.
Passively managed funds mimic the performance of an underlying index. So, there is no fund manager taking active investment decisions.
The last set of fund filings included Navi Total US Stock Market FoF, which would give Indian investors to the Vanguard fund — the Vanguard Total Stock Market Index Fund ETF. Vanguard is the second-largest asset manager in the world and a pioneer in passive investing.
The other filings were Navi Nifty Next 50 Fund, Nifty Midcap 150 Index Fund, Nifty Smallcap Index 250 Fund, Navi NASDAQ 100 Fund of Fund, Navi Nifty 100 ESG Index Fund, Navi Nifty Bank Index Fund, Navi Nifty Commodities Index Fund, Navi Nifty IT Index Fund and Navi Nifty Pharma Index Fund.
Also read: Sachin Bansal on why his Navi Mutual Fund is focused on rolling out passive schemes
As passive funds don’t involve active fund management, these are low-cost for investors as there is no need to pay the fund management fee.
In an interaction with Moneycontrol, Bansal had said, “We see low-cost fund management as another opportunity that will allow a large number of retail investors to access mutual funds.”
To be sure, Navi MF already has a bunch of actively managed schemes, which it got after the acquisition of Essel MF in February 2021.Internet Explorer Channel Network