SBI launches Nifty Next 50 Index Fund NFO

Our Bureau Mumbai | Updated on April 26, 2021

The NFO will be open from April 28 to May 11

SBI Mutual Fund has launched a new fund offer of passively managed SBI Nifty Next 50 Index Fund.

The open-ended index scheme would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs.

The NFO will be open from April 28 to May 11.

Nifty Next 50 index’s return since inception stood at 16 per cent CAGR as on March-end.

The investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index.

Vinay M Tonse, Managing Director & CEO, said the new fund offer is a good opportunity for those who want to take advantage of the merits of passive investing and at the same time benefit from the growth potential of future market leaders which comprise the underlying index.

Chief Business Officer DP Singh said this is the second index fund offering in addition to our existing SBI Nifty Index Fund and other passive offerings in the ETF category.

Launched in 1996, Nifty Next 50 with base value of 1,000 points.

The Nifty Next 50 Index is rebalanced on a semi-annual basis.

The scheme would invest 95 to 100 per cent in securities covered by Nifty Next 50 Index with up to 5 per cent in Money Market instruments and units of liquid mutual fund.

The minimum investment during NFO is fixed at ₹5,000. Investments can also be done through daily, weekly, monthly, quarterly, semi-annual and annual SIP.

Published on April 26, 2021

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