MUMBAI: L&T Investment Management, the mutual fund arm of L&T Financial Services, today announced the launch of the 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 Mr.
The L&T Nifty 50 Index Fund will 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 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 in the 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.
Kailash Kulkarni, Chief Executive, L&T Investment Management Ltd. said, “Markets today provide an opportune platform for investors to invest in a well-diversified portfolio of fundamentally strong, highly liquid and well-known companies. We see Index funds as part of a prudent investment design and suitable for both first-time as well as seasoned investors. Investors can wisely use these opportunities in combination with actively managed funds, to build a solid long- term portfolio.”
The funds are designed for investors who are looking for equity exposure through a passive investing strategy and with a long-term investment horizon, to grow wealth.
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