Axis Mutual Fund, one of the leading asset management companies in India announced the launch of Axis Nifty Next 50 Index Fund (An Open Ended Index Fund tracking the NIFTY NEXT 50 Index). The NFO will be open for subscription on January 7, 2022 and close on January 21, 2022. The new fund will be managed by Jinesh Gopani, Head-Equity. The minimum application amount is INR 5,000 and investors can invest in multiples of INR 1, thereafter. The new fund will allow investors to participate in the growth story of companies that come after the top 50.
The Nifty Next 50 index is designed to measure the performance of 50 companies from the constituents of Nifty 100 Index after excluding the constituents of Nifty 50 Index (essentially 51-100), spread across 13 distinct industries. Based on free-float market capitalisation, the Nifty Next 50 index is structured in a manner to leverage the potential of the companies that will form the next generation of market leaders. In the wake of recent circumstances, several companies have remodelled themselves and showcased growth capabilities on the back of several measures such as strong funding, management pedigree, revamped or new business models etc. Furthermore, the index is re-balanced on a semi-annual basis, thereby ensuring exposure to new businesses within the respective broad sector. Thus, the fund will prove to be an ideal option for investors looking for long term wealth creation solutions.
In addition to market-linked returns, the passive nature of the fund allows investors the benefit of diversification and quality investments in the upcoming bluechip companies. Benchmark returns, ease of investment, and transparency in stock selection make index funds an ideal option for investors as they remove the risk of security selection and rely on broader market wisdom. Furthermore, given the mutual fund structure, investors can look to invest through various systematic options like SIPs, STP’s & lumpsum investments.
Chandresh Nigam, MD & CEO, Axis AMC said, “At Axis AMC, we have continually upheld our philosophy of ‘Responsible Investing’ through the introduction of robust products designed to deliver consistent performance, to the best of our capabilities. The Axis Nifty Next 50 Index Fund comes at a time when investors have understood the importance of passive strategies to leverage the growth of the next generation of leaders, while ensuring market benchmark returns. We are confident that this fund will be a notable add-on that will yield long term wealth creation opportunities for our investors.”