L&T MF’s new index fund offer opens tomorrow

Our Bureau Mumbai | Updated on March 23, 2020

Notwithstanding the market turmoil due to the Covid-19 scare, L&T Investment Management has announced the launch of two new fund offers ― L&T Nifty 50 Index Fund and L&T Nifty Next 50 Index Fund.

The NFO is scheduled to open on March 24 and close on March 31.

The funds are designed for investors who are looking for equity exposure through passive investing strategy and with a long-term investment horizon to grow their wealth.

The open-ended index funds seek to replicate the performance of the Nifty 50 Index and Nifty Next 50 Index and operate predominantly in the large-cap space as defined by SEBI.

Such funds offer diversification by investing in market leaders of different sectors, said the mutual fund arm of L&T Financial Services.

The L&T Nifty 50 Index Fund will track the Nifty 50, the flagship index of the NSE. It includes 50 of about 1,600 companies traded on the exchange and captures about 65 per cent of its float-adjusted market capitalisation. The fund covers major sectors of the Indian economy.

Next 50 by m-cap

The L&T Nifty Next 50 Index Fund will track the stocks that are the next 50 by market capitalisation after the 50 largest companies which are in the Nifty 50. Predominantly composed of large-cap stocks, this category is believed to be the stepping stone to becoming a part of the Nifty 50 index. It has historically been a transition category for a large number of companies that are leaders in their respective industries today.

Kailash Kulkarni, Chief Executive, L&T Investment Management, said the market currently provides an opportune platform for investors to invest in a well-diversified portfolio of fundamentally-strong, highly-liquid and well-known companies. Index funds have a prudent investment design, being suitable for both first-time and seasoned investors. Investors can wisely use these opportunities, in combination with actively-managed funds, to build a solid long-term portfolio, he added.

Published on March 23, 2020

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