By Admin 
NFO Alert: Nippon India Mutual Fund has launched a new fund offer (NFO) based on manufacturing theme. This new fund offer – Nippon India nifty India manufacturing etf and Nippon India Nifty India Manufacturing Index Fund has opened for subscription from August 6 and will be open till 20 August 2025.
This new fund has been brought at a time when the manufacturing sector in India is again catching up. Big companies like Tech Company Apple are shifting their production to India and the country is moving towards making itself a global manufacturing hub. This speed can be seen clearly.
According to estimates, India will cross the $ 1 trillion mark in manufacturing next year. Currently manufacturing is 17% of India’s GDP and it is expected to increase further in the coming years. This new fund offer of the nipple will replace Nifty India Manufacturing Index.
This index includes companies like capital goods, autos, metals, healthcare, chemicals, etc. In this, companies of sectors have been selected which are related to manufacturing, as fixed under the AMFI framework. Also, it has been followed by rules like giving minimum share to main sectors like auto and capital goods and maximum weight limit. It is invested in the top 300 companies selected from the universe selected from the NIFTY 100, Nifty Midcap 150 and Nifty Smallcap 50.
As India is entering a new era of growth on the basis of manufacturing, this fund is trying to capitalize on the strong economic situation of the country. India’s economy is expected to grow at a rate of above 7%, which is supporting the Aadhaar of youth population of 28.2 years and 68% working age.
Due to cheap pay structure, internationally competitive corporate tax rates and plans like PLI, speed power and Make in India, there are large -scale industrial investment due to strong policy support of the government. In the last 10 years, FDI has gained 69% in the manufacturing sector.
Manufacturers from all over the world are now adopting China-Plus-One strategy and India seems to be taking great advantage of it. This is causing long -term possibilities like domestic demand, change in supply chain and premiumization in the consumer sector.
This fund is available in both ETF and Index Fund format. Investors get the opportunity to invest in low cost in the manufacturing sector’s diversified basket, which has complete transparency of the index and also rare tracking errors. ETF provides an intrade liquidity i.e. procurement and sale at any time during the day, while systematic investment can be done through SIP through index funds.
For investors who want to be a part of India’s next industrial growth, this NFO is the best option of a rule-based, sector-specific investment which is based on long-term economic foundations.