The NIFTY Next 50 Index is more diversified with top 3 sectors’ weight pegged at 58% as compared to 67% for NIFTY 50. According to the fund house, HDFC NIFTY Next 50 Fund is suitable for investors looking for simple yet cost effective way of investing in ‘Next Top 50’ companies on the listed universe of NSE.
“Launch of HDFC NIFTY Next 50 Index Fund is a part of our endeavor to expand our product bouquet in the passive space. HDFC AMC has been one of the oldest players in the passive strategies with proven capability,” said Navneet Munot, MD & CEO, HDFC AMC.
HDFC NIFTY Next 50 Index Fund will offer exposure to diversified portfolio at sector/ stock level. The Fund will provide exposure to unique businesses and differentiated businesses as compared to Nifty50.
“HDFC NIFTY Next 50 Index Fund offers exposure to diversified portfolio at sector/ stock level. NIFTY Next 50 Index has favourable risk-reward ratio as compared to NIFTY 50 Index. NIFTY Next 50 has outperformed NIFTY 50 Index over 19 year period ended September 30, 2021. Out of 75 stocks that were included in NIFTY 50 index during January 2002 – March 2021, about 51 stocks were from NIFTY Next 50 Index. Thus the Fund offers investors an opportunity to invest in basket of tomorrow’s potential NIFTY 50 Companies,” said Krishan Kumar Daga, Senior Fund Manager, HDFC AMC.