ADITYA BIRLA SUN LIFE NIFTY NEXT 50 INDEX FUND NFO
Aditya Birla Sun Life Mutual Fund has announced the launch of ABSL Nifty Next 50 Index Fund NFO. Nifty Next Fifty index comprises companies ranked 51 to 100 by market capitalisation. It is a spot between the large blue chip stocks and top mid caps. After covid, focus on large cap shares have only increased as the economy increasingly become more formalised with the consolidation across different sectors. Large caps stocks have reasonably stable business profits and revenue with relatively higher governance and are actively tracked by industry participants.
The New Fund Offer (NFO) starts from 31st January 2022 and will end on 14th February 2022.
Investment Objective
The investment objective of the scheme is to provide returns that closely track the total returns of shares as represented by Nifty Next Fifty index, subject to tracking errors.
ADVANTAGES
- Exposure to potential market leaders.
- Opportunity for capital appreciation and high growth.
- Predominantly large caps.
- Better risk adjusted long run performance.
- Better social representation.
- Less top 10 holdings concentration than Nifty 50.
WHY INVEST IN ABSL NIFTY NEXT 50 INDEX FUND?
1. No DEMAT required:
No requirement of demat account and investments can be made at low minimum accounts.
2. Diversification:
Exposure to segments of markets and also market as a whole.
3. Helps in capital appreciation:
It helps in capital appreciation over the long term. Investors are protected from short term volatility.
4. Eliminate unsystematic risk:
To eliminate risk pertaining to a particular company or sector, fund manager selection.
5. Large cap equity exposure:
To take exposure in large cap equity at reasonable costs.
6. Invest in equity through SIP:
To take exposure in equities without trading actively and the scheme offers SWP, SIP, STP facilities also.
Asset Allocation Pattern
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Equity and Equity related instruments constituting the Nifty Next 50 Index | 95% | 100% | Moderate |
| Debt and Money Market Instruments | 0% | 5% | Low |
About the Scheme
| Name of the fund | Aditya Birla Sun Life Nifty Next 50 Index Fund |
| Fund launched by | Aditya Birla Sun Life Mutual Fund |
| Asset Management Company | Aditya Birla Sun Life AMC Limited |
| Type of scheme | An open-ended scheme tracking the Nifty Next 50 Index |
| Investment Objective | The investment objective of the scheme is to provide returns that closely track the total returns of shares as represented by Nifty Next Fifty index, subject to tracking errors. The scheme does not indicate or guarantee any returns. There can be no assurance that the objective of the scheme will be achieved. |
| Benchmark | Nifty Next 50 TRI |
| Load | 0.25% if redeemed/switched out of units before 3 days from the date of allotment. |
| Minimum Application Amount | ₹ 100 & in multiples of ₹ 1 thereafter |
| Minimum Additional Amount | ₹ 100 & in multiples of ₹ 1 thereafter |
| SIP, STP & SWP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Lovelish Solanki and Kedarnath Mirajkar |
SUITABILITY
- First time investors in equities, willing to participate through the index investing route.
- Existing investors looking to complement their core equity portfolio with passive investment.
- Financial institutions, Provident Funds, Insurance Companies and Treasuries.