L&T Investment Management Limited has launched a new open-ended equity scheme named as L&T Nifty Next 50 Index Fund. The NFO is open for subscription from March 24, 2020, to March 31, 2020. The scheme will reopen for continuous sale and repurchase on April 20,2020. The NFO will be offered Rs. 10 per unit at NAV based prices upon re-opening. The primary investment objective of the scheme is to generate long term capital appreciation by investing in equity securities covered by the Nifty next 50 by market capitalization.
| Name of the Scheme | L&T Nifty Next 50 Index Fund |
| NFO Dates | Opens on 24th March 2020 and closes on 31st March 2020 |
| Scheme Type | open ended equity scheme tracking Nifty next 50 index |
| Scheme Category | Index Fund |
| Risk Level | Moderately High |
| Fund Manager | Mr. Praveen Ayathan |
| Benchmark | Nifty Next 50 Index TRI (Total Return Index) |
| Minimum Investment Amount | Rs. 5000 |
| Entry Load | NIL |
| Exit Load | 1% if redeemed/switched out before 1 year from the date of allotment |
The L&T Nifty Next 50 Index Fund will monitor the stocks that are the next 50 by market capitalization after the top 50 largest companies, which are in the Nifty 50. The scheme will adopt a passive investment strategy, i.e. the fund will not be actively managed and hence there will be no human bias. Passive investing’s goal is to build wealth gradually. Majorly composed of large-cap stocks, this category is believed to be the stepping stone to become a part of the Nifty 50 index. It has historically proved to be a transition category for a large number of companies that are leaders in their respective industries today. The scheme offers both direct and regular plan and both the plans offer growth and dividend options.
The fund is managed by Mr. Praveen Ayathan, Chief Dealer- Equity, L&T Investment Management Limited. Mr. Ayathan has an experience spanning over 27 years in equity dealing. Ayathan has been working with L&T since July 2012 and prior to joining L&T, he was associated with Kotak Mahindra Asset Management Company Limited and Dalal & Broacha Stockbroking Private Limited. Mr. Praveen holds a B.Sc in Mathematics.
Other funds managed by Praveen Ayathan
On a Closing Note
There is no assurance or guarantee that the investment objective of this scheme will be achieved. Therefore, it is highly recommended that investors should conduct due diligence and invest only if the objectives of the fund aligns with their own.
Happy Investing!
Disclaimer: The views expressed in this post are that of the author and not those of Groww