Aditya Birla Sun Life Mutual Fund has launched Aditya Birla Sun Life Nifty Next 50 ETF (exchange-traded fund), an open-ended scheme that will track the performance of Nifty Next 50 index.The scheme will be benchmarked against the Nifty Next 50 Index, subject to tracking errors. The benchmark index is a basket of ‘next’ 50 companies, i.e. ones that come after the top 50 companies in the Nifty 100 index in terms of market capitalization.
The new fund offering of the scheme began on December 11 and is slated to end on December 18, 2018. Subsequent to the NFO, the ETF will trade on stock exchanges, like publicly-listed companies. The scheme will be listed on the NSE and BSE and will reopen within five days from date of allotment of units.
An ETF represents the value of an underlying asset. This could range from a commodity, stock, index or a basket of securities. Unlike mutual funds, intraday trades are allowed on ETFs. Investors need a demat account and trading account to invest in ETFs.
ICICI Prudential had launched its Nifty Next 50 ETF in August this year, while UTI’s Nifty Next 50 ETF was launched in July 2017. UTI’s scheme has given returns of -1.77 percent since its launch. (As on Dec. 12, 2018)
The Nifty Next 50 Index is well-diversified and includes stocks across various sectors. Sectors with the highest weightage are – consumer goods (28.69 percent), financial services (17.05 percent) and pharmaceuticals (13.24 percent). Some of the top components (by weightage) are Britannia Industries (5.77 percent), Godrej Consumer Products (4.39 percent) and Dabur India (3.58 percent).
| Index Name | 1-yr Price Returns (%) | 5-yr Price Returns (%) |
| Nifty Next 50 Index | -7.30 | 17.42 |
*Returns data as of Nov. 30, 2018
The fund will be managed by Lovelish Solanki. Solanki also manages other passive schemes like Aditya Birla Sun Life Sensex ETF and Aditya Birla Sun Life Nifty ETF. Since the Nifty Next 50 scheme is also an ETF, the role of a fund manager will be limited.
Key information about Nifty Next 50 NFO:
| NFO period | December 11 – December 18, 2018 |
| Minimum application amount | Rs. 5,000 |
| Benchmark | Nifty Next 50 Index |
| Fund manager | Lovelish Solanki |
Other Funds by Aditya Birla Sun Life Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| Aditya Birla Sun Life Digital India Fund | 19.95 | 134.75 | Sectoral/Thematic Fund |
| Aditya Birla Sun Life International Equity Fund | 14.75 | 53.78 | Sectoral/Thematic Fund |
| Aditya Birla Sun Life India GenNext Direct Fund | 14.54 | 804.61 | Sectoral/Thematic Fund |
| Aditya Birla Sun Life MNC Direct Fund | 12.28 | 3431.79 | Sectoral/Thematic Fund |
| Aditya Birla Sun Life Tax Relief 96 Fund | 12.13 | 6059.83 | ELSS |
| Aditya Birla Sun Life Banking & Financial Services Fund | 12.1 | 1549.58 | Sectoral/Thematic Fund |
| Aditya Birla Sun Life Tax Plan | 11.46 | 742.27 | ELSS |
| Aditya Birla Sun Life Index Fund | 11.08 | 134.67 | Large Cap Fund |
| Aditya Birla Sun Life Equity Fund | 10.07 | 9250.62 | Multi Cap Fund |
| Aditya Birla Sun Life Focused Equity Fund | 10 | 4212.48 | Large Cap Fund |
| Aditya Birla Sun Life Gold Direct Fund | 9.72 | 55.08 | Gold Funds |
| Aditya Birla Sun Life Government Securities Fund | 9.49 | 138.97 | Gilt Fund |
| Aditya Birla Sun Life Financial Planning Fund FoF | 8.61 | 126.73 | Multi Asset Allocation |
| Aditya Birla Sun Life Equity Advantage Fund | 8.5 | 6184.03 | Large & Mid Cap Fund |
| Aditya Birla Sun Life Banking & PSU Debt Fund | 8.49 | 6646.43 | Banking and PSU Fund |
| Aditya Birla Sun Life Frontline Equity Direct Fund | 8.4 | 20451.39 | Large Cap Fund |
| Aditya Birla Sun Life Global Real Estate Fund Retail | 8.3 | 15.46 | Sectoral/Thematic Fund |
| Aditya Birla Sun Life Low Duration Fund | 8.21 | 9060.5 | Low Duration Fund |
| Aditya Birla Sun Life Income Fund | 8.2 | 1366.92 | Medium to Long Duration Fund |
| Aditya Birla Sun Life Corporate Bond Fund | 8.17 | 17329.9 | Corporate Bond Fund |