According to reports from Upstox Securities, Invesco has filed a draft scheme information document with the Securities and Exchange Board of India (SEBI) for a new mutual fund scheme. The filing represents a significant step in the regulatory approval process for launching the fund in the Indian market.
As reported by Upstox Securities, the scheme will operate through passive investments in equity and equity-related securities, specifically targeting the Nifty India Defence Index TRI. The fund aims to replicate the performance of this defence-focused index, subject to tracking error, providing investors with exposure to the defence sector through a systematic investment approach. According to the latest draft, 95% to 100% of the scheme's assets will be invested in equity and equity-related securities that form part of the Nifty India Defence Index, with the balance up to 5% invested in money market instruments and other liquid assets for liquidity purposes.
According to the regulatory filing, the scheme represents a structured approach to accessing the defence sector through index-based investing. The passive investment strategy aligns with current market trends toward systematic, low-cost investment approaches in specific industry segments. The benchmark index includes companies from the Nifty Total Market Index that operate in eligible defence industries or earn at least 10% of their revenue from defence-related business, with the maximum weight of a single stock capped at 20%.
The proposed scheme will be offered under Regular and Direct plans with Growth and IDCW options, with a minimum investment amount fixed at ₹100 both during the New Fund Offer (NFO) and after the scheme reopens. Units will be available at ₹10 each during the NFO, with the offer period remaining open for a minimum of three working days and a maximum of 15 days. The scheme will reopen for continuous transactions within five business days of allotment, and no exit load will be charged on redemptions. Funds collected during the NFO are to be invested within 30 business days from the date of allotment in accordance with SEBI regulations.
The filing represents a significant development in India's mutual fund landscape, offering investors systematic exposure to the defence sector through index-based investing. The scheme provides comprehensive facilities including Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), Systematic Withdrawal Plans (SWP) and ASBA, with information on tracking error, tracking difference and total expense ratio to be disclosed after launch. The NFO timeline and remaining operational details are yet to be disclosed, with the scheme set to launch as an open-ended index fund that will replicate the Nifty India Defence Index TRI.
