Nippon India launches two index funds: Nifty IT index and Bank Index

Nippon India Mutual Fund has introduced two innovative index funds, centered around the Nifty IT Index and the Nifty Bank Index. The New Fund Offers (NFOs) for the Nippon India Nifty IT Index Fund and the Nippon India Nifty Bank Index Fund commenced on Monday, with subscription available until February 16.
These new offerings are passively managed, faithfully mirroring their respective indices.By opting for index funds, investors gain exposure to a broad spectrum of stocks rather than individual selections.
The Nippon India IT Index Fund seeks to capitalize on the recent upswing in the technology sector. Aligned with the Nifty IT Index, investors gain access to the top 10 IT companies. India stands as a global leader in technology services, with 40% of worldwide IT spending outsourced, capturing a commanding 58% market share. Revenue streams emanate from a diverse clientele spanning the US, UK, and Europe. Additionally, Indian IT firms have adeptly embraced evolving trends, with 40% of their earnings stemming from digital technologies.
Over the past year, the Nifty IT Index has boasted an annualized return of nearly 27%, frequently surpassing the Nifty 50 benchmark.
The Nippon India Bank Index Fund replicates the Nifty Bank Index, furnishing investors with a well-rounded portfolio comprising the top 12 banks in India. The Nifty Bank Index has delivered returns of 13.3% and 16.4% over the past one and three years, respectively.