Axis Mutual Fund on Wednesday said it is looking to collect at least Rs 50 crore from its new fund — the Nifty Next 50 index fund. The open-ended index fund, which tracks the Nifty Next 50 index, opens for subscription on January 7 and closes on 21, the fund house said, adding that the new fund will be managed by Jinesh Gopani, who heads equity at the Asset Management Company (AMC).
Raghav Iyengar, chief business officer at the AMC told PTI that the fund house is looking to mop up at least Rs 50 crore during the offer period.
The Nifty Next 50 is designed to measure the performance of 50 companies from the constituents of Nifty 100 index, excluding the constituents of Nifty 50, spread across 13 industries.
Based on free-float market capitalisation, the Nifty Next 50 index is structured to leverage the potential of the companies that will form the next generation of market leaders.
The index is re-balanced on a semi-annual basis, thereby ensuring exposure to new businesses within the respective broad sector. In addition to market-linked returns, the passive nature of the fund allows investors the benefit of diversification and quality investments in the upcoming bluechips, the AMC said.
Chandresh Nigam, MD & CEO of 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 growth of the next generation of leaders, while ensuring market benchmark returns.