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

The new scheme will be managed by Jinesh Gopani, head-equity, Axis Mutual Fund and the minimum application amount is ₹5,000 and investors can invest in multiples of Re 1, thereafter. The fund will offer investors to participate in the growth story of companies that come after the top 50 (Nifty 50).

Chandresh Nigam, managing director and chief executive officer, Axis AMC said, “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.”

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.

The top five constituents of the Nifty Next 50 index are Apollo Hospitals Enterprise Ltd. (4.71%), Avenue Supermarts Ltd. (4.27%), Adani Enterprises Ltd. (3.76%), Info Edge (India) Ltd. (3.69%), and Vedanta Ltd. (3.62%).

In terms of sectoral allocation, the Nifty Next 50 is well diversified with financial services having the biggest weightage at 19.07%., followed by consumer goods (16.91%), metals (10.97%), consumer services (10.25%), and pharma (7.91%).

In comparison, the financial services sector has the highest weightage in Nifty 50 at 36.94%.

Further data provided by the fund house showed that since 2005, Nifty Next 50 has outperformed Nifty 50 and Nifty 100 together in eight calendar years.

Based on the 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.

As per the fund house, in addition to market-linked returns, the passive nature of the fund allows investors the benefit of diversification and quality investments in the upcoming blue-chip companies.