Axis Mutual Fund launched Axis Nifty Next 50 NFO and announced this open-ended index fund that will primarily track the Nifty Next 50 Index, will be open for subscription from 7 January 2022 until 21 January 2022. This NFO will be managed by Jinesh Gopani and investors can invest in it with a minimum application amount of Rs. 5,000. Through this fund, investors can make the most of the growth story of companies that are part of the Nifty 50 index.
Investment objective of the fund
Axis Nifty Next 50 NFO is an open-ended index fund scheme. The primary objective of the scheme will be to provide returns that closely align with the total returns of the NIFTY NEXT 50 index. The scheme will focus on investing in stocks that form part of the underlying index and constantly track the benchmark index for performance measurement. The fund will invest in these stocks in the same proportion as the index composition, while following a passive investment strategy. To meet the liquidity and expense expectations, it may also invest in debt and money market instruments.
Why should you apply for the NFO?
Benefits of passive investing: Since Axis Nifty Next 50 NFO is based on a passive investment style, investors can benefit from an efficient low-cost strategy. Since the fund is passively managed, it takes away the risk of individual security selection. The fund aims to rely on broader market wisdom to participate in the stock constituents of the benchmark index.
Portfolio diversification: A passively managed fund can act as a right addition to an investment portfolio aiming for diversification. It can offer a long-term wealth creation opportunity as it tracks a basket of Nifty Next 50 index stocks to achieve corresponding returns. Investors can also gain exposure to a variety of sectors included in the index.
Index rebalancing: The Nifty Next 50 index is rebalanced once every 6 months. This allows the index to gain exposure to new businesses across broad market sectors. Apart from market-linked returns, the fund’s passive strategy can allow investors the benefit of exposure to upcoming blue chip stocks.
Historical performance of Nifty Next 50 compared to Nifty 50 and Nifty 100: For investors to have an idea around the potential returns that can be expected from Axis Nifty Next 50 NFO, here are the historical percentage returns of Nifty Next 50 compared to other Nifty indices:
| 2020 | 2019 | 2017 | |
| Nifty Next 50 | 16% | 2% | 46% |
| Nifty 50 | 16% | 14% | 30% |
| Nifty 100 | 16% | 12% | 33% |
Source: https://www.etmoney.com/blog/nifty-50-nifty-next-50-or-nifty-100-which-large-cap-index-to-pick/
Fund details
| Scheme name | Axis Nifty Next 50 NFO |
| Type of Scheme | An open-ended index fund scheme tracking the Nifty Next 50 index. |
| Category of the scheme | Index fund |
| Benchmark | Nifty Next 50 index |
| Plan options | Regular planDirect plan |
| Fund Manager | Jinesh Gopani |
| Exit Load | Nil |
| Minimum Investment | Rs. 5,000 and multiples of Re. 1 thereafter. |
| Expense Ratio | Not known |
| NFO Period | 7 Jan 2022 – 21 Jan 2022 |
Where can you invest in the NFO?
Head over to the Fisdom App to invest in this NFO.
