Navi's new fund offers a play on diversified US stock portfolio
The direct plan of the fund will have a total expense ratio of 9 basis points, making it one of the lowest cost international fund options. The NFO is open till February 18.
Synopsis
While several MF schemes have been asked by the capital markets regulator to stop accepting flows in their schemes with the limit of $7 billion for mutual funds' overseas investments close to hitting the limit, there is a separate $1 billion limit for investing in overseas-listed exchange-traded funds (ETFs), which is still open.
Investors looking to bet on the US markets could subscribe to the new fund offer (NFO) of Navi Mutual Fund's US Total Stock Market Fund of Funds. They must, however, spread their investments instead of lump-sum purchases as US equities could be vulnerable on account of the US Federal Reserve's liquidity tapering plans and rich valuations. This is one of the few domestic mutual fund schemes investing overseas that is still accepting fresh
