What Makes the Nifty 100 Index Fund a Profitable Investment Option?

When it comes to wealth management and creation, investing in the stock market is the right option for you. There’s also a risk associated with it that you must be content with. If the market performs poorly, you could lose a significant amount of your capital. One of the best ways to reduce exposure to market risk is to invest in the Nifty 100 Index Fund

Why Index Fund?

The Indian Mutual fund industry is slowly growing towards the passive investment model.

Many fund houses have ventured into spaces with some new and innovative offerings. Some fund houses disrupted these spaces with the lowest costing funds.

What is the Nifty 100 Index Fund?

A Nifty Index Fund is a mutual fund scheme that tracks the Nifty 50 index by investing in stocks of companies comprising Nifty 50 and endeavoring to achieve return equivalent to the Nifty 50 Index by passive investment strategy. The Nifty 100 Index Fund is a basket of India’s top 100 large-cap companies. Nifty 100 Index Fund is investing in NIFTY 50 and NIFTY Next 50 simultaneously. Nifty 100 Index Fund consisting of the top 100 well-established and known companies, is an ideal stepping stone to the world of equity investing. Nifty 100 Index Fund is considered an efficient way to gain exposure to the Large Cap universe in Indian equities.

Investing in the Nifty 100 Index Fund

One can invest in the Nifty 100 Index Fund by following the same steps as one would adopt to invest in other mutual fund schemes. The investors can hold the units of such index funds in investors’ folio and Demat form. Mutual funds execute the redemption transactions in Nifty 100 Index Fundunds at the prevailing Net Asset Value.

Taxation for the Nifty 100 Index Fund

At least 95% of the net assets are invested in the index constituents of the Nifty 50 index. And thus, these funds are classified as equity-oriented mutual funds sip app for tax purposes, and accordingly, equity mutual fund tax is applicable.

Advantages of Investing in a Nifty 100 Index Fund

The advantages that a Nifty 100 Index Fund has overstocks are more traditional mutual funds.

Stable Returns

The returns you receive may be higher for individual or industry-specific stocks, but they may not be stable due to fluctuations in the market. However, when you invest in the Nifty 100 Index Fund,  the returns you get here are more stable, and the chance of future returns is unlimited with these funds.

Lower Risk

Since the stocks in the Nifty 100 Index Fund are identical to that of the Nifty 50 index, you get the experience of market exposure, therefore a chance of diversifying your portfolio and reducing the risk involved.

Elimination of Bias

The Nifty 100 Index Fund has no emotional bias, and the selection of the stock portfolio is completely objective since this fund is designed to mirror the Nifty Index.

Axis Nifty 100 Index Fund

Axis Nifty 100 Index Fund is an index fund having an expense ratio of 0.15%. The fund tracks the Nifty 100 Index. The fund was launched in October 2019 and has an AUM of Rs 457.10 crore. Axis Nifty 100 Index Fund offered 50.11% returns in the last year.

The Nifty 100 Index Fund is suitable for investors looking for long-term wealth solutions. Nifty 100 Index Fund aims to achieve returns of the stated index subject to tracking error.

Benefits of Axis Nifty 100 Index Fund

  • You can get exposure to the top 100 companies by free-float market capitalization through a single investment.
  • It also provides a low-cost passive investment vehicle tracking the NIFTY 100 Index.

If you are interested in investing in the Nifty 100 Index Fund, you can use the Axis Mutual Fund SIP App. The benefit of the Mutual Fund SIP App is that it enables new investors to make investments at any time and anywhere. You can switch, purchase, redeem in Axis Mutual Fund Schemes using Mutual Fund SIP App. One can invest in the Nifty 100 Index Fund using Axis Mutual Fund SIP App with no re-registration. The existing users of Axis Mutual Fund can use their current website or either download the Axis Mutual Fund SIP App.

Investing Nifty 100 Index Fund can increase the chance of your funds’ chance to perform well over the long term, allowing you to realize your investment goals. As these funds are passively managed, you don’t have to spend much of your time monitoring your portfolio.

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