Navi Mutual Fund Launches US Total Stock Market FOF

Navi Mutual Fund has launched the Navi US Total Stock Market Fund of Fund. The fund will invest in the Vanguard Total Stock Market ETF, which is one of the largest passively managed US ETFs. The Fund’s expense ratio will be 0.06% per annum. However, the fund house has stated that the expense ratio is not permanent and is subject to change from time to time within the permitted overall expense ratio of 1.00%. The NFO will open for subscription on February 4.

Vanguard Total Stock Market ETF (VTI) tracks the CRSP US Total Market Index, which includes more than 4,000 stocks, representing nearly 100% of the US investable stock market. Although the fund invests in US stocks of all sizes – large, mid, small and micro caps, it has a considerable allocation to large companies such as Apple, Microsoft, Alphabet, Amazon, Facebook and Tesla.

The CRSP US Total Market Index, the Vanguard ETF’s benchmark index, is a well-diversified, comprehensive and broader index with exposure to multiple sectors, the fund companies said. The US broad index provided an annualized return (in INR) of 28.15%, 20.11% and 20.27% over the 1 year, 5 year and 10 year respectively (as of December 31, 2021).

Sachin Bansal, Co-Founder of Navi Group, said: “Navi is delighted to be able to give Indian investors the opportunity to invest in Vanguard, a global pioneer in low-cost index funds. The Navi US Total Stock Market Fund of Fund will, for the first time, offer Indian retail investors a convenient and low-cost way to participate in the entire US stock market. Our goal is to continue to offer new investment opportunities to investors at the best possible cost.

This is the third passively managed program launched by Navi Mutual Fund this year. It launched Navi Nifty Next 50 Index Fund and Navi Nifty Bank Index Fund in January, both of which are low-cost index funds. The fund house plans to launch three more funds by the end of March.


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