ABSL Mutual Fund launches Nifty Next 50 Index Fund

Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Nifty Next 50 Index Fund, an open ended scheme that will track the Nifty Next 50 Index. The New Fund Offer will close for subscription on February 14.

The minimum application amount for this fund is Rs 100 and in multiples of Re 1 thereafter, during the NFO.

According to a press release, the scheme is suitable for investors seeking long-term capital growth. Since this is an index fund, investors do not need a Demat account to invest in the index and can avail both Systematic Investment Plan (SIP) and lumpsum route. Nifty Next 50 is a well-diversified index with consumer and commodities sector constituting 25.6% and 20.1% respectively, followed by Financial Services with 20%, as on January 15.


A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, said, “Large caps offer stability, liquidity, better price discovery and high corporate governance. Especially during volatile times, large caps are a must-have in an investor’s portfolio. And with a predominantly large cap exposure, lower concentration and better sub-sectoral representation, Nifty Next 50 Index Fund provides investors an ideal way to invest in the potential future bluechips.”

He added , “The Nifty Next 50 Index has consistently given better 3-year rolling returns than Nifty 50 Index. From 2002 till date, the Nifty Next 50 Index has given a CAGR of 21.8% p.a., significantly higher than Nifty 50 Index’s CAGR of 18.2% p.a. in the same period. Aditya Birla Sun Life Nifty Next 50 Index Fund thus offers investors an opportunity to enjoy better risk-adjusted returns at a low cost.”