Aditya Birla Sun Life Nifty Next 50 Index Fund

EXPLAIN ABOUT ADITYA BIRLA SUN LIFE NIFTY NEXT 50 INDEX FUND? Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Nifty Next 50 Index Fund, an open ended scheme that will track the Nifty Next 50 Index. The New Fund Offer will close for subscription on February 14. The minimum application amount for this fund is Rs 100 and in multiples of Re 1 thereafter, during the NFO. According to a press release, the scheme is suitable for investors seeking long-term capital growth. Since this is an index fund, investors do not need a Demat account to invest in the index and can avail both Systematic Investment Plan (SIP) and lumpsum route. Nifty Next 50 is a well-diversified index with consumer and commodities sector constituting 25.6% and 20.1% respectively, followed by Financial Services with 20%, as on January 15. EXPLAIN THE FINANCIAL POSITION OF THE COMPANY? Launched in 1996, the Nifty Next 50 Index represents the 50 companies from Nifty 100, after excluding the top Nifty 50 companies. Experts believe that that these have the potential to become blue-chips. In fact, of the 75 stocks included in the Nifty 50 Index from January 2002 to March 2021, 51 stocks have been graduated from the Nifty Next 50 Index. Also, Nifty Next 50 is a well-diversified index with better sectoral as well as sub-sectoral diversification. As on 15 January, consumer and commodities sector constitute 25.6% and 20.1% respectively, followed by financial services with 20%. In comparison, financial services (36.3%) and IT (18.5%) alone account for 55% of the Nifty 50 Index, showcasing higher concentration. Commenting on the launch, A Balasubramanian, managing director and chief executive officer, Aditya Birla Sun Life AMC said, “Large-caps offer stability, liquidity, better price discovery and high corporate governance. Especially during volatile times, large caps are a must-have in an investor’s portfolio. And with a pre-dominantly large cap exposure, lower concentration and better sub-sectoral representation, Nifty Next 50 Index Fund provides investors an ideal way to invest in the potential future blue chips." From 2002 till date, the Nifty Next 50 Index has given returns at a CAGR of 21.8%, higher than Nifty 50 Index’s CAGR of 18.2% in the same period. The Nifty 50 Index has exposure to just 13 sectors, while the Nifty Next 50 Index has an exposure to 17 sectors as per data on the National Stock Exchange as on 31 December. These include IT, construction, oil & gas and healthcare, to name a few. The minimum application amount for this fund is ₹100 and in multiples of Re 1, thereafter, during the NFO period. EXPLAIN ABOUT THE IPO DETAILS OF ADITYA BIRLA SUN LIFE NIFTY NEXT 50 INDEX FUND NFO ? Investment Objective The investment objective of the scheme is to provide returns that closely correspond to the total returns of securities as represented by Nifty Next 50, subject to tracking errors.   This product is suitable for investors who are seeking:* long term investments Investments in securities covered by Nifty Next 50 Index . *Investors should consult their financial advisers if in doubt whether the product is suitable for them Fund Details Fund Type - Open-Ended Class - Others Category - ETF Min Investment - Fund Manager - Mr. Lovelish Solanki & Mr. Kedarnath Mirajkar Latest NAV - 41.324 (as on 24-Jan-2022) Inception Date - Dec 18, 2018