Mumbai: SBI Mutual Fund has announced the launch of the SBI Nifty Next 50 Index Fund, an open-ended index scheme that would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs.
The SBI Nifty Next 50 Index Fund NFO (New Fund Offer) will be launched from April 28 to May 11, 2021.
The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error, SBI Mutual Fund in a statement.
This new scheme would be suitable for investors who are seeking long term capital appreciation, investment in securities covered by the Nifty Next 50 Index and gain access to the growth of potential market leaders, it said.
Vinay M. Tonse, MD & CEO, SBI MF said: “As a fund house, we have built a strong franchise in the passive investment space, in addition to our actively managed funds. I believe SBI Nifty Next 50 Index Fund is a good opportunity for those who want to take advantage of the merits of passive investing and at the same time benefit from the growth potential of future market leaders which comprise the underlying index.”
Nifty Next 50 was launched on December 24, 1996, with a base date of November 4, 1996, and a base value of 1,000 points, which represented 50 companies from Nifty 100 after excluding the constituents of Nifty 50.
The index is well-diversified across sectors with less concentrated exposure to any one sector. The Nifty Next 50 Index is rebalanced on a semi-annual basis.
The scheme would invest a minimum of 95 per cent and a maximum of 100 per cent investment in securities covered by the Nifty Next 50 Index with up to 5 per cent in money market instruments and units of the liquid mutual fund.
The minimum application amount required is Rs 5,000 and in multiples of Re 1 thereafter. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual and annual SIP.
The Fund Manager for the SBI Nifty Next 50 Index Fund would be Raviprakash Sharma, CFA, who also manages SBI Nifty Index Fund and other Exchange Traded Funds of the fund house.
