For investors seeking returns that are consistent with the performance of the NIFTY Next 50 Index, subject to tracking error, HDFC Asset Management Company has announced the introduction of a New Fund Offer - HDFC NIFTY Next 50 Index Fund. After removing the components of the NIFTY 50 Index, the NIFTY Next 50 Index reflects 50 firms from the NIFTY 100.
The HDFC NIFTY Next 50 Index Fund intends to provide a disciplined way to profit from the growth of a basket of "tomorrow's prospective NIFTY 50 companies." The subscription period for the New Fund Offer (NFO) will run from October 22, 2021, through October 29, 2021.
The NFO will appeal to investors searching for a simple yet cost-effective method to participate in the NSE's listed universe's 'Next Top 50' firms. In comparison to the Nifty50, the company says that HDFC NIFTY Next 50 Index Fund would give exposure to a diverse portfolio at the sector/stock level, as well as exposure to distinct and innovative businesses.
The HDFC NIFTY Next 50 Index Fund is an open-ended plan that tracks or replicates the NIFTY Next 50 Index (TRI). The NIFTY Next 50 Index is more diversified, with the top three sectors accounting for 58 percent of the index's weight, compared to 67 percent for the NIFTY 50, and hence may provide superior risk-adjusted returns over time. The fund will be managed passively, with the components of the NIFTY Next 50 Index as its investing universe.
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