Angel One’s Nifty Move: New ETF Hits the Market

Angel One Mutual Fund has launched a new exchange-traded fund (ETF) – the ANGEL ONE NIFTY 50 ETF – with the aim of replicating the performance of the Nifty 50 Index. This open-ended scheme falls under the "Other ETFs" category and is designed to track the total returns of the Nifty 50 Index before expenses, though returns are subject to tracking errors.

The New Fund Offer (NFO) opens on May 5, 2025, and will close on May 16, 2025. There is no entry or exit load, making it a cost-effective investment option for investors. The minimum investment amount is ₹1,000, making it accessible for retail investors. This ETF is ideal for those looking to passively invest in India’s top 50 large-cap companies and gain market-linked returns with lower expense ratios compared to actively managed funds.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Key Features of the Angel One Nifty 50 ETF - NFO

• Fund Name: Angel One Nifty 50 ETF - NFO.
• Fund Type: Open-ended.
• Category: Exchange Traded Fund (ETF).
• NFO Open Date: 5th May 2025.
• NFO Close Date: 16th May 2025.
• Minimum Investment Amount: ₹1,000.
• Entry Load: Nil.
• Exit Load: Nil.
• Fund Managers: Mr. Mehul Dama & Mr. Kewal Shah.

What are the Angel One Nifty 50 ETF Investment Objective?

The investment objective of the Angel One Nifty 50 ETF is to replicate Nifty 50 Index with an aim to provide returns before expenses that track the total return of Nifty 50 Index, subject to Tracking Errors. However, there can be no assurance or guarantee that the investment objective of the Angel One Nifty 50 ETF will be achieved.

What are the Investment Strategy of the Angel One Nifty 50 ETF?

• This is a passively managed Exchange Traded Fund (ETF) designed to track the performance of the Nifty 50 Total Returns Index (TRI).
• The Angel One Nifty 50 ETF will replicate the Nifty 50 Index by investing in the same stocks, in approximately the same proportion as the index, thereby avoiding stock-specific risk and active fund manager bias.
• At least 95% of the total assets will be allocated to the securities of the underlying index, ensuring high index alignment.
• The fund will not perform active security selection or market timing but will mirror the index performance through regular rebalancing.
• Tracking error will be minimized by timely rebalancing based on changes in index constituents and weightages.

What are Risks Associated with Angel One Nifty 50 ETF?

• Absence of Active Market: The ETF units may lack liquidity on stock exchanges, especially during periods of high volatility or low demand.
• Market Price vs. NAV Mismatch: Units may trade at a discount or premium to the NAV due to demand-supply fluctuations in the secondary market.
• Tracking Error Risk: Due to various operational factors, returns may deviate slightly from those of the benchmark index.
• Regulatory and Operational Risks: Changes in SEBI or exchange regulations may affect trading, redemption, or portfolio management.

Check out other upcoming NFOs

Benefits of Investing in Angel One Nifty 50 ETF - NFO

The Angel One Nifty 50 ETF offers investors a cost-effective and transparent way to gain exposure to India’s top 50 large-cap companies through the Nifty 50 Index. As a passively managed fund, it eliminates fund manager bias and stock-picking errors, making it ideal for first-time investors and those preferring a systematic approach to equity investing. With no entry or exit load and a low minimum investment of ₹1,000, the NFO is accessible and budget-friendly. The fund aims to closely track the total returns of the Nifty 50 Index, using disciplined rebalancing and strategic use of derivatives to minimize tracking errors.

What Type of Investor Should Invest in Angel One Nifty 50 ETF - NFO?

• Investors who seek long-term capital growth and wish to participate in the performance of India’s top 50 companies via the Nifty 50 Index.
• Individuals looking for a low-cost, diversified equity product without the risks of active fund management.
• First-time equity investors who prefer a passive investment strategy and are not comfortable picking individual stocks or actively managed funds.