The new fund offer (NFO) will open on June 5 and close on June 19.
The fund seeks to provide returns, before expenses, that correspond to the total returns of the BSE Clean Environment Index, subject to tracking error. The scheme will follow a passive investment strategy and use the BSE Clean Environment Total Return Index as its benchmark.
According to the fund house, the index comprises about 25 companies operating across segments linked to the clean economy, including renewable energy, electric vehicles, water treatment, recycling and waste management. Renewable energy companies account for around 86% of the index weight, while the remaining exposure is spread across the other sectors.
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The scheme aims to offer investors exposure to businesses that are part of India’s environmental and energy-transition ecosystem through a rules-based index-tracking approach.
Investors can subscribe to the scheme with a minimum investment of Rs 500 during the NFO period and thereafter. The fund will levy an exit load of 1% on redemptions made within 15 days from the date of allotment, while no exit load will apply after that period.
The equity component of the scheme will be managed by Swapnil Mayekar, with Dishant Mehta serving as associate fund manager. Rakesh Shetty will manage the debt component.
The launch adds to the growing number of thematic and sector-focused passive funds in the mutual fund industry, offering investors an index-based route to gain exposure to companies associated with clean energy and environmental infrastructure themes.
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