SBI Nifty Next 50 Index Fund NFO - All Details

SBI Mutual Fund has announced the launch of the SBI Nifty Next 50 Index Fund. The fund is an open-ended scheme that will be replicating the Nifty Next 50 Index in the same allocation pattern.

The New Fund Offer (NFO) starts on 28th April 2021 and will end on 11th May 2021.

Investment Objective

The investment objective of the scheme is to provide long-term capital growth by generating returns closely corresponding to the returns of the securities constituting the Nifty Next 50 Index.

Features

The Fund will be investing at least 95% of its assets in securities constituting the Nifty Next 50 Index.
The fund offers exposure to all the 50 constituents of the Nifty Next 50 through a single unit.
The fund also offers some exposure to money market instruments and units of liquid schemes.
Lower expense ratio as compared to other active funds.

What is the Nifty Next 50 Index?

Stocks that rank between 51st to 100th in terms of market capitalization are the constituents of the Nifty Next 50 Index.
In other words, the index represents the balance of 50 companies after excluding Nifty 50 companies from the index of Nifty 100.
These stocks are the potential leaders of the market.
The index was launched on 24th December 1996 and is rebalanced semi-annually.
The methodology of the index is Periodic Capped Free Float.

Top 10 Constituents of Nifty Next 50 Index

Stocks	Weightage
Vedanta Ltd	3.82%
Adani Green Energy Limited	3.52%
Avenue Supermarts	3.47%
Infoedge	3.30%
ICICI Lombard General Insurance	3.12%
Dabur India	3.05%
Apollo Hospitals	2.91%
Adani Enterprises	2.83%
Godrej Consumers	2.75%
Pidilite Industries	2.75%

*As of 31st March 2021

Nifty Next 50 Index Top 5 Sector Allocation

Sector	Weightage
Consumer Goods	18.47%
Financial Services	16.98%
Pharma	10.91%
Consumer Services	8.99%
Metals	7.91%

*As of 31st March 2021

Why invest in SBI Nifty Next 50 Index Fund?

The fund gives access to the growth potential market leader’s stocks.
Gives the opportunity to invest in a well-diversified portfolio.
Through passive investments, it reduces the unsystematic risks.
Gives the opportunity to participate in the journey of tomorrow’s market leaders.

Who Should Invest?

This scheme is suitable for investors who are -

Interested in long-term capital growth.
Interested in earning returns that closely correspond to the returns generated by the Nifty Next 50 Index, subject to tracking errors.
Recommended for investors with an investment horizon of 3-5 years & above.

Asset Allocation Pattern

Instruments	Minimum % of total assets (Indicative)	Maximum % of total assets (Indicative)	Risk Profile
Equity securities representing Nifty Next 50 Index	95%	100%	Moderate to High
Money market instruments, TriParty repo, and units of liquid schemes	0%	5%	Low

About the scheme

Name of the fund	SBI Nifty Next 50 Index Fund
Fund launched by	SBI Mutual Fund
Asset Management Company	SBI Funds Management Private Limited
Type of scheme	An open-ended scheme replicating or tracking Nifty Next 50 Index
Investment Objective	The investment objective of the scheme is to provide long-term capital growth to investors by generating returns closely corresponding to the total returns of securities representing the Nifty Next 50 Index.
Benchmark	Nifty Next 50 TRI
Entry Load	Not Applicable
Exit Load	-If units redeemed or switched out within 365 days - 1% of applicable NAV -If units are redeemed or switched out after 365 days - NIL
Taxation	Taxed as Equity -If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15% -If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year
Minimum Application Amount	₹ 5,000 & in multiple of ₹ 1 thereafter
Minimum Additional Amount	₹ 1,000 & in multiple of ₹ 1 thereafter
Plans Available	Regular Direct
Options	Growth IDCW Payout Dividend Reinvestment
Fund Managers	Mr. Raviprakash Sharma

SIP Details

Type	Minimum Installments	Minimum Amount
Daily SIP	12	₹ 500 & in multiples of ₹ 1 thereafter
Weekly SIP	12	₹ 500 & in multiples of ₹ 1 thereafter
Weekly SIP	6	₹ 1,000 & in multiples of ₹ 1 thereafter
Monthly SIP	12	₹ 500 & in multiples of ₹ 1 thereafter
Monthly SIP	6	₹ 1,000 & in multiples of ₹ 1 thereafter
Quarterly SIP	4	₹ 1,500 & in multiples of ₹ 1 thereafter
Semi-Annual SIP	4	₹ 3,000 & in multiples of ₹ 1 thereafter
Annual SIP	4	₹ 5,000 & in multiples of ₹ 1 thereafter

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