The document discusses whether Muslims can invest in the stock market and provides information about the Nippon India ETF Shariah BeES fund. It outlines the fund's objective to generate returns matching the Nifty Shariah Index, its asset allocation of over 99% in equities, and its top 10 equity holdings constituting 83% of assets. Tax implications for the fund include capital gains tax of 15% for holdings under 1 year and 10% for over 1 year.
6. About Fund
1. Nippon India ETF Shariah BeES is Open-ended Large Cap Equity scheme
which belongs to Nippon India Mutual Fund House.
2. The fund was launched on Mar 18, 2009.
7. Investment objective &
Benchmark
1. The investment objective of the fund is that " The scheme
seeks to generate returns that closely correspond to the
total returns of the securities as represented by the Nifty
Shariah Index by investing upto 90% of its assets in
securities which are constituents of CNX Nifty Shariah Index
in the same proportion as in the index. "
2. It is benchmarked against NIFTY 50 Shariah Total Return
Index.
8. Asset Allocation & Portfolio
Composition
1. The asset allocation of the fund comprises around 99.47%
in equities, 0.0% in debts and 0.53% in cash & cash
equivalents.
2. While the top 10 equity holdings constitute around 83.22%
of the assets, the top 3 sectors constitute around 79.9% of
the assets.
3. The fund largely follows a Growth oriented style of
investing and invests across market capitalisations - around
100.0% in giant & large cap companies, 0.0% in mid cap and
0.0% in small cap companies.
9. Tax Implications
1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG)
if units are redeemed within 1 year of investment.
2. For units redeemed after 1 year of investment, gains of upto Rs. 1
lakh accruing from those units in a financial year shall be exempted
from tax.
3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-
term Capital Gain Tax - LTCG).
4. For Dividend Distribution Tax, the dividend income from this fund
will get added to the income of an investor and taxed according to
his/her respective tax slabs.
5. Also, for dividend income in excess of Rs 5,000 in a financial year;
the fund house shall deduct a TDS of 10% on such income.
10. Frequently Asked Questions
(FAQs)
Q: How Long should I Invest in Nippon India ETF Shariah BeES?
A: The suggested investment horizon of investing into Nippon
India ETF Shariah BeES is >3 years. The suggested investment
horizon is the minimum time required for holding investments in
the fund to reduce its downside risk and ensure that the
returns become more predictable.
Q: Who manages the Nippon India ETF Shariah BeES?
A: The Nippon India ETF Shariah BeES is managed by Mehul Dama
(Since Nov 06, 2018).