SBI Mutual Fund has launched SBI Nifty Next 50 Index Fund, which will track the performance of the Nifty Next 50 Index. The new fund offer (NFO) will open for subscription on April 28 and close on May 11. It is an open-ended scheme, which means that the shares can be redeemed by the investors at any point of time.
The investment objective of the offer is to provide returns in tune with the total returns of the constituent shares of Nifty-50 index.
SBI Mutual Fund's NFO will invest 95 to 100 per cent in shares belonging to the Nifty Next 50 Index and up to 5 per cent in money market instruments and units of liquid mutual funds.
Investors can start with a minimum investment of Rs 5,000 and in multiples of Rs 1 thereafter. The investments can be done on a daily, weekly, monthly, quarterly, semi-annual and annual basis.
Launched in 1996, Nifty Next 50 index has a base value of 1,000 points and is rebalanced on a semi-annual basis.