Mumbai: SBI Mutual Fund has announced the launch of SBI Nifty Next 50 Index Fund, an open-ended index scheme which would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs. The SBI Nifty Next 50 Index Fund NFO (New Fund Offer) will be launched from April 28 to May 11, 2021.Also Read - LIVE Liverpool vs Real Madrid UEFA Champions League Final 2022: Match Will Start at 1:00 PM IST, 21:30 PM EU TIME

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, SBI Mutual Fund in a statement. Also Read - With 442 New COVID Cases, Delhi Witnesses Slight Decline, No Death Reported

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, it said. Also Read - Sana-Di-Ge Review- An Utter Joy For Coastal Cuisine Lovers In Delhi's Diplomatic Enclave 

Vinay M. Tonse, MD & CEO, SBI MF said: “As a fund house, we have built a strong franchise in the passive investment space, in addition to our actively managed funds. I believe 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.”

Nifty Next 50 was launched on December 24, 1996, with a base date of November 4, 1996, and base value 1,000 points, which represented 50 companies from Nifty 100 after excluding the constituents of Nifty 50.

The index is well-diversified across sectors with a less concentrated exposure to any one sector. The Nifty Next 50 Index is rebalanced on a semi-annual basis.

The scheme would invest minimum 95 per cent and maximum 100 percent investment 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 application amount required is of Rs 5,000 and in multiples of Re 1 thereafter. 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.