The Navi Mutual Fund (MF) of Flipkart co-founder Sachin Bansal has filed documents with the markets regulator seeking authorisation for a ‘Total US Stock Market' fund-of-funds (FoF).
Vanguard Total Stock Market Index Fund ETF will benefit from the proposed programme. Vanguard, which was created by John Bogle, is the second-largest money manager in the United States behind Blackrock. With an expense ratio of just 0.03 percent, the Vanguard Total Stock Market Index Fund has achieved annual average returns of 44.33 percent, 18.75 percent, and 14.7 percent CAGR in dollar terms over the past 1, 3, and 10 years.
The expense ratio of an Indian fund house cannot be more than double that of the underlying fund, according to the Securities and Exchange Board of India (Sebi) laws. The Navi Total US Stock Market FoF's expenditure ratio would be limited to approximately 0.09 percent as a result.
Bansal's Navi Mutual Fund is likewise a passive investment vehicle. The fund company has filed for a NASDAQ 100 FoF along with their Total US Stock Market application. This programme, on the other hand, will invest in other asset managers in the United States. Blackrock-owned iShares funds, Lyxor, and USAA Funds are among the asset managers named in its disclosures.
Comments