Angel One Nifty Total Market Index Fund – Direct (G) : NFO Details

Angel One Mutual Fund has launched the Angel One Nifty Total Market Index Fund – Direct (G), an open-ended fund  designed to replicate the performance of the Nifty Total Market Index. The scheme aims to deliver returns before expenses that track the index’s total return, subject to tracking errors. The New Fund Offer (NFO) opens on February 10, 2025, and closes on February 21, 2025. With a minimum investment of ₹1,000, the fund provides investors with broad market exposure. The scheme has no entry or exit load, making it a cost-effective investment option.

Details of the NFO: Angel One Nifty Total Market Index Fund – Direct (G)

Investment Objective and Strategy

Objective:

The investment objective of the Angel One Nifty Total Market Index Fund – Direct (G) is to replicate Nifty Total Market Index with an aim to provide returns before expenses that track the total return of Nifty Total Market Index, subject to Tracking Errors. However, there can be no assurance or guarantee that the investment objective of the Scheme will be achieved.

Investment Strategy:

The Angel One Nifty Total Market Index Fund – Direct (G) will be passively managed exchange traded fund which will follow an investment approach designed to track the performance of Nifty Total Market TRI. The Scheme seeks to achieve this goal by investing in securities constituting the Nifty Total Market Index in the same proportion as in the Index.

The AMC does not make any judgement about the investment merit of the individual security constituting the Nifty Total Market Index nor will it attempt to apply any economic, financial or market analysis. Indexing eliminates active management risks with regard to over/ underperformance vis-à-vis a benchmark. This would be done by investing in all the stocks comprising the Nifty Total Market Index in approximately the same weightage that they represent in Nifty Total Market Index. The Scheme will invest at least 95% of its total assets in the securities comprising the Underlying Index. The Scheme may also invest in Money Market Instruments to meet the liquidity and expense requirements.

The Angel One Nifty Total Market Index Fund – Direct (G) shall follow a passive investment strategy. The performance of the Scheme may not be commensurate with the performance of the benchmark of the Scheme on any given day or over any given period. Such variation is commonly referred to as the Tracking Error. The investment strategy would revolve around reducing the Tracking Error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of the securities in the index as well as the incremental Subscriptions/Redemptions from the Scheme. The Scheme intends to use Derivatives for purposes that may be permitted by the SEBI MF Regulations from time to time. Derivatives instruments may take the form of Futures, Options or any other instrument, as may be permitted from time to time. For detailed Derivative strategies, please refer to SAI.

Who Should Invest in Angel One Nifty Total Market Index Fund – Direct (G)?

• Long-term investors – Ideal for those seeking broad market exposure with a passive investment approach.
• Passive investors – Suitable for individuals who prefer index-based investing without active stock selection.
• Diversification seekers – Investors looking for a single fund that covers a wide range of Indian equities.
• Low-cost investors – No entry or exit load makes this a cost-effective choice for market participants.
• ETF and index fund enthusiasts – Those comfortable with ETFs and looking for exposure to a total market index.
• Liquidity-focused investors – Suitable for those who need flexibility, as ETFs can be bought and sold like stocks.

What Are the Risks Associated With Angel One Nifty Total Market Index Fund – Direct (G)?

1. Market risk – The fund is exposed to fluctuations in the stock market, affecting returns.
2. Tracking error – The fund’s performance may deviate from the Nifty Total Market Index due to tracking inefficiencies.
3. Sectoral risk – Changes in economic conditions or government policies can impact certain sectors disproportionately.
4. Liquidity risk – Investors may face difficulty in buying or selling ETF units during volatile market conditions.
5. No active management – The fund follows a passive strategy, meaning no defensive actions are taken in downturns.
6. Derivative risk – Use of derivatives could lead to potential losses due to leverage and market fluctuations.