SBI Mutual Fund on April 26 announced the launch of SBI Nifty Next 50 Index Fund, an open-ended index scheme which, it said, would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs.
The index scheme would be launched from April 28 to May 11, 2021, SBI MF said in a statement. The "open-ended index scheme would track 24-year-old Nifty Next 50 Index", it added, further noting that Nifty Next 50 index’s return since inception stood at 15.56 percent CAGR (as on March 31, 2021).
"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, subject to tracking error," the statement said.
This new scheme would be suitable for investors who are seeking long-term capital appreciation, investment in securities covered by Nifty Next 50 Index and gain access to growth of potential market leaders, SBI MF added.
The minimum application amount required is of Rs 5,000 and in multiples of Re 1 thereafter, the statement said, further adding that "investments can also be done through daily, weekly, monthly, quarterly, semi-annual and annual SIP".
The Fund Manager for the SBI Nifty Next 50 Index Fund would be Raviprakash Sharma, CFA, who also manages SBI Nifty Index Fund and other Exchange Traded Funds of the fund house.
SBI MF's Managing Director and Chief Executive Officer Vinay M Tonse said the SBI Nifty Next 50 Index Fund 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".