Bajaj Finserv Launches Nifty Next 50 Index Fund: NFO Opens at Just ₹100!

Bajaj Finserv Nifty Next 50 Index Fund is an open-ended index fund aiming to replicate the performance of the Nifty Next 50 Total Return Index (TRI). The scheme invests in the same stocks and weightage as the Nifty Next 50, without attempting to outperform or underperform the index, subject to tracking error. It offers liquidity through daily purchases and redemptions, with proceeds dispatched within 3 working days. The fund will not be listed on stock exchanges. NAV will be disclosed on all business days via the AMC and AMFI websites.

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Key Features of Bajaj Finserv Nifty Next 50 Index Fund – Direct (G)

Investment Objective of Bajaj Finserv Nifty Next 50 Index Fund – Direct (G)

An open ended index linked growth Bajaj Finserv Nifty Next 50 Index Fund – Direct (G) seeking to replicate the returns of the Nifty Next 50 through investments in a basket of stocks drawn from the constituents of the Nifty Next 50index.The objective of the Scheme is to invest in companies whose securities are included in the Nifty Next 50 Index and subject to tracking errors, to endeavor to achieve the returns of the Nifty Next 50 Index.

This would be done by investing in all the stocks comprising Nifty Next 50 in approximately the same weightage that they represent in Nifty Next 50. The Scheme will not seek to outperform the Nifty Next 50 or to underperform it. The objective is that the performance of the NAV of the Scheme should track the performance of the Nifty Next 50 over the same period. However, there is no assurance that the investment objective of the Scheme will be achieved.

What are the Investment Strategies of Bajaj Finserv Nifty Next 50 Index Fund?

1. The Bajaj Finserv Nifty Next 50 Index Fund – Direct (G) aims to replicate the Nifty Next 50 Index by investing in the same stocks in the same proportion to minimize tracking error.
2. Regular portfolio rebalancing will be done to reflect changes in the underlying index, as well as to accommodate inflows and redemptions.
3. The fund may temporarily use equity derivatives (futures, options, swaps, etc.) when direct stocks are unavailable or for handling corporate actions, on a defensive basis.
4. It may use the Securities Lending and Borrowing Mechanism (SLBM) to generate additional income with a lower degree of risk.
5. The scheme may invest in other mutual fund schemes, including Bajaj Finserv’s or others, subject to SEBI regulations, without charging additional fees.
6. Up to 5% of the portfolio may be allocated to debt and money market instruments, selected based on rigorous credit analysis and interest rate outlook.
7. The Risk Management Team will evaluate debt securities considering the issuer's financial health, operating environment, and credit rating.
8. The fund may also engage in repo transactions in corporate debt securities, per SEBI and RBI guidelines.
9. The investment team will monitor macroeconomic conditions and use interest rate forecasting to position the portfolio appropriately.
10. The scheme will maintain low portfolio turnover, with changes generally limited to index rebalancing, subscriptions, redemptions, or corporate actions.
11. There is no guarantee of returns, and the scheme’s success depends on market conditions and regulatory permissions.

What are the risk associated with Bajaj Finserv Nifty Next 50 Index Fund?

• The Bajaj Finserv Nifty Next 50 Index Fund – Direct (G) passively tracks the Nifty Next 50 Index, so returns depend entirely on index performance.
• Tracking error may occur due to factors like delays in trades, market illiquidity, or fund expenses.
• If the index is discontinued or modified, the scheme may shift to a different index, affecting alignment.
• The fund may not perfectly mirror the index during rebalancing or due to price variations across exchanges.
• Equity investments are subject to market volatility, interest rate changes, and government policy shifts.
• Liquidity issues may arise, making it hard to buy/sell stocks quickly, especially in low-volume stocks.
• Settlement delays and trading restrictions can result in missed investment opportunities or losses.
• Dividend income is not guaranteed; companies may reduce or stop paying dividends.
• Securities lending carries counterparty risk — the intermediary may default or delay returning stocks.
• Changes in tax laws or government regulations can impact fund returns or market sentiment.

What type of investors should invest in Bajaj Finserv Nifty Next 50 Index Fund?

Bajaj Finserv Nifty Next 50 Index Fund is suitable for investors who are seeking:

• Wealth creation over long term.

• An index fund that seeks to replicate returns by investing in a basket of stocks covered by Nifty Next 50 Index and aims to achieve returns of the Nifty Next 50 Index, subject to tracking error.