Navi Mutual Funds launches Navi US Total Stock Market Fund of Fund

Navi Mutual Funds launches Navi US Total Stock Market Fund of Fund

by 5paisa Research Team Last Updated: 2022-12-12T13:00:06+05:30

Navi has launched its US Total Stock Market Fund of Fund which gives you access to Vanguard Total Stock Market ETF or in the Schwab Total Stock Market Index Fund. Read on to find out more.

International investing is buzzing all over the mutual fund fraternity. No wonder we have seen a lot of asset management companies launching funds with international exposure specifically to the US market. In the year 2019, there were around 35 funds, but now there are close to 64 funds which is a substantial rise. This can be very well attributed to the performance of the US-based indices such as the S&P 500 and NASDAQ. The performance of these indices has gained a lot of traction from Indian investors. 

Now even Navi Mutual Fund is all set to ride on this with its Navi US Total Stock Market Fund of Fund (FoF) which is open for subscription from February 04, 2022. The NFO will close on February 18, 2022, before it reopens for subscription within five business days from the date of allotment. The fund is said to invest in the Vanguard Total Stock Market Exchange Traded Fund (ETF) or the Schwab Total Stock Market Index Fund. This will bring down the cost of the fund drastically. Vanguard is the forerunner of offering low-cost funds with its passively managed schemes.

Many of you might be wondering why the company has launched its NFO when the mutual fund industry is on the verge of draining the permissible foreign limit as per the rules of the Securities and Exchange Board of India (SEBI). This therefore has put restrictions on the fresh investments in many of the international mutual funds. In fact, even those funds having international exposure have also stopped accepting fresh investments.

Having said that, there won’t be any impact of this on the funds that invest in foreign ETFs. This is because investing in foreign ETFs have a separate limit and there is enough bandwidth available as of now. Therefore, even the Navi US Total Stock Market FoF won’t be affected by the SEBI rules.


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