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 |
|
| Options |
|
| 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 |
| 6 | ₹ 1,000 & in multiples of ₹ 1 thereafter | |
| Monthly SIP | 12 | ₹ 500 & in multiples of ₹ 1 thereafter |
| 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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