SBI Mutual Fund has launched the SBI Nifty Next 50 Index Fund, which will monitor the performance of the Nifty Next 50 index. The new fund offering (NFO) will open for subscription on April 28 and close on May 11. This is an open-ended plan, which means that the shares can be redeemed by investors at any time.
The investment objective of the offering is to provide returns in line with the total returns of the constituent stocks of the Nifty-50 index.
SBI Mutual Fund’s NFO will invest 95-100 percent in equities belonging to the Nifty Next 50 Index and up to 5 percent in money market instruments and liquid mutual fund shares.
Investors can start with a minimum investment of Rs 5,000 and multiples of Rs 1 thereafter. Investments can be made on a daily, weekly, monthly, quarterly, semi-annual and annual basis.
Launched in 1996, the Nifty Next 50 index has a base value of 1000 points and is rebalanced on a semi-annual basis.