Axis Mutual Fund to launch Nifty Next 50 Index Fund. Details here

Asset administration firm, Axis Mutual Fund, on Wednesday introduced the launch of an open-ended index fund monitoring the Nifty Subsequent 50 Index. The brand new fund provide will probably be open for subscription on 7 January and shut on 21 January.

The brand new scheme will probably be managed by Jinesh Gopani, head-equity, Axis Mutual Fund and the minimal utility quantity is 5,000 and traders can spend money on multiples of Re 1, thereafter. The fund will provide traders to take part within the progress story of corporations that come after the highest 50 (Nifty 50).

Chandresh Nigam, managing director and chief govt officer, Axis AMC mentioned, “The Axis Nifty Subsequent 50 Index Fund comes at a time when traders have understood the significance of passive methods to leverage the expansion of the subsequent era of leaders, whereas making certain market benchmark returns. We’re assured that this fund will probably be a notable add-on that may yield long-term wealth creation alternatives for our traders.”

The Nifty Subsequent 50 index is designed to measure the efficiency of fifty corporations from the constituents of Nifty 100 Index after excluding the constituents of Nifty 50 Index (basically 51-100), unfold throughout 13 distinct industries.

The highest 5 constituents of the Nifty Subsequent 50 index are Apollo Hospitals Enterprise Ltd. (4.71%), Avenue Supermarts Ltd. (4.27%), Adani Enterprises Ltd. (3.76%), Information Edge (India) Ltd. (3.69%), and Vedanta Ltd. (3.62%).

By way of sectoral allocation, the Nifty Subsequent 50 is effectively diversified with monetary companies having the largest weightage at 19.07%., adopted by shopper items (16.91%), metals (10.97%), shopper companies (10.25%), and pharma (7.91%).

Compared, the monetary companies sector has the very best weightage in Nifty 50 at 36.94%.

Additional information supplied by the fund home confirmed that since 2005, Nifty Subsequent 50 has outperformed Nifty 50 and Nifty 100 collectively in eight calendar years.

Primarily based on the free-float market capitalisation, the Nifty Subsequent 50 index is structured in a way to leverage the potential of the businesses that may kind the subsequent era of market leaders.

As per the fund home, along with market-linked returns, the passive nature of the fund permits traders the good thing about diversification and high quality investments within the upcoming blue-chip corporations.

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