SBI Mutual Fund’s Nifty Next 50 Index Fund has emerged as one of the top-performing mutual fund schemes in recent times. Launched in May 2021, the fund has consistently delivered impressive returns, outshining its benchmark and catching the attention of investors. Over the last three years, this fund has not only doubled one-time investments but also provided excellent returns through systematic investment plans (SIPs).
What is Nifty Next 50 Index Fund?
The SBI Nifty Next 50 Index Fund invests in the stocks of 50 companies ranked just below the Nifty 50 companies in terms of market capitalization. These are companies with high growth potential, often expected to become future leaders in their respective sectors. As they work their way toward the top 50, they tend to offer investors higher returns, making them an attractive option for those seeking long-term growth.
Fund Performance at a Glance
The SBI Nifty Next 50 Index Fund has been delivering solid returns since its inception, and its performance has caught the eye of both lump-sum and SIP investors:
- 1-Year Return: 70.29%
- 3-Year Annualized Return: 22.01%
- Return Since Launch: 24.29% per annum
- Value of ₹1 Lakh Investment Since Launch: ₹2,08,100
Compared to its benchmark, Nifty Next 50 TRI, which offered 23.07% annualized returns over the same 3-year period, the SBI fund stands out with consistent performance. It has also significantly outperformed the broader market benchmark, BSE Sensex TRI, which saw 13.98% annualized returns during the same period.
SIP Investors Reap High Returns
For those who prefer the SIP route, the SBI Nifty Next 50 Index Fund has been highly rewarding. Investors who contributed ₹10,000 monthly for three years saw the value of their total investment grow substantially:
- 3-Year Annualized Return (SIP): 30.78%
- Total Investment in 3 Years: ₹3,60,000
- Total SIP Value After 3 Years: ₹5,59,086
The 31% annualized return through SIPs has made this scheme a favorite among investors looking for disciplined wealth creation.
Key Details About the Fund
- Total AUM (Assets Under Management): ₹1,422.58 crore (as of September 30, 2024)
- Expense Ratio: 0.32% (as of September 30, 2024)
- Launch Date: May 19, 2021
- Minimum Lump Sum Investment: ₹5,000
- Minimum SIP Investment: ₹500
Top Holdings in the Fund
The fund holds stakes in some of the most promising companies in India, including:
- Vedanta
- Hindustan Aeronautics Ltd (HAL)
- InterGlobe Aviation (Indigo)
- Tata Power
- Power Finance Corporation (PFC)
- REC
- Divi’s Laboratories
- Indian Oil
- Cholamandalam Investment
- TVS Motor
These companies represent a mix of high-growth industries, including aviation, power, finance, and pharmaceuticals, which further enhances the fund’s potential for long-term gains.
Why SBI Nifty Next 50 Index Fund Stands Out
The fund’s ability to double investments in just three years has made it a star performer in the mutual fund space. Its focus on companies just below the Nifty 50, combined with a low expense ratio, makes it an attractive option for investors seeking steady growth with manageable risks.
Investors should note, however, that past performance does not guarantee future returns. It’s always wise to consider your risk tolerance and consult with financial advisors before making investment decisions.
