New options for investing are now available for people who have mutual funds.
In the stock market, which has been doing well lately, there are two new choices for investors.
These choices are from Nippon India Mutual Fund, which has just introduced two new types of funds.
You can invest until February 16th
Both of Nippon India Mutual Fund’s new funds are connected to Nifty indices. One is based on Nifty IT Index, and the other on Nifty Bank Index.
They are called Nippon India Nifty IT Index Fund and Nippon India Nifty Bank Index Fund respectively.
Both of these new funds started accepting investments on Monday. You can invest in them until February 16th.
Why index funds are special
Index funds are good for new investors because they are easy to understand. These funds include all the stocks that are in their respective benchmark index.
For example, Nippon India Nifty IT Index Fund will have all the shares of Nifty IT, and Nippon India Nifty Bank Index Fund will have shares of Nifty Bank.
These funds are also inexpensive because managing them doesn’t need a lot of research.
Bright future for IT companies
Nippon India Mutual Fund aims to benefit investors from the market’s success and also diversify their investments.
The IT Index Fund aims to take advantage of the recent growth in the technology sector. It allows investors to invest in the top 10 IT companies.
In the past year, Nifty IT index has given returns of about 27 percent, outperforming Nifty 50 on almost half the occasions.
Investment opportunity in top 12 banks
Nippon India Bank Index Fund provides investors with a mix of investments in the top 12 banks in India.
Nifty Bank Index has given returns of 13.3 percent and 16.4 percent in the last one year and three years respectively.
Nippon India Mutual Fund believes that India’s banking sector is currently experiencing growth.
Banks’ net profit in India increased by 44.6 percent in the financial year 2023, while loans increased by more than 15 percent.
So, funds based on banking index provide good investment opportunities.
