NFO: L&T Nifty 50 Index Fund and L&T Nifty Next 50 Index Fund

By Morningstar |  23-03-20 | 

L&T Investment Management today announced the launch of L&T Nifty 50 Index Fund and L&T Nifty Next 50 Index Fund. The New Fund Offer (NFO) is scheduled to open on March 24 and close on March 31,2020.

These open-ended index funds seek to replicate the performance of the Nifty 50 Index and Nifty Next 50 Index and operate predominantly in the large cap space as defined by SEBI.Such funds offer diversification by investing in market leaders of different sectors.

The funds will be managed by Praveen Ayathan.

The L&T Nifty 50 Index Fundwill track the Nifty 50 which is the flagship index on the National Stock Exchange of India Ltd. (NSE). The index tracks the behavior of a portfolio of blue-chip companies, the largest and most liquid Indian securities. It includes 50 of the approximately 1,600 companies traded on the exchange and captures approximately 65% of its float-adjusted market capitalization. The fund covers major sectors of the Indian economy and offers investors the exposure to the Indian market in one efficient portfolio.

The L&T Nifty Next 50 Index Fund will track the stocks that are the next 50 by market capitalization after the top 50 largest companies which are inthe Nifty 50. Predominantly composed of large cap stocks, this category is believed to be the steppingstone to become a part of Nifty 50index. It has historically been a transition category for a large number of companies that are leaders in their respective industries, today.

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