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.

 Fund Details

Name of the SchemeL&T Nifty Next 50 Index Fund
NFO DatesOpens on 24th March 2020 and closes on 31st March 2020
Scheme Typeopen ended equity scheme tracking Nifty next 50 index
Scheme CategoryIndex Fund
Risk LevelModerately High
Fund ManagerMr. Praveen Ayathan
BenchmarkNifty Next 50 Index TRI (Total Return Index)
Minimum Investment AmountRs. 5000
Entry LoadNIL
Exit Load1% if redeemed/switched out before 1 year from the date of allotment

About the Fund

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.

Who Should Consider Investing in this Fund?

  • Investors looking for equity exposure through a passive investing strategy at a low cost
  • Investors looking to be a part of the growth story of the Indian market.
  • Investors looking to invest from a long term perspective to grow their wealth

Key Benefits of the Scheme

  • Benefits of Passive Investing
  • No active risks
  • Sectoral diversity
  • Lower operating cost
  • Automatic stock selection

About the Fund Manager

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 

  • L&T Equity Savings Fund (G)
  • L&T Equity Savings Fund – Direct (G)
  • L&T Balanced Advantage Fund -Dir. (G)
  • L&T Arbitrage Oppor. – Regular (G)
  • L&T Arbitrage Oppor. – Direct (G)
  • L&T Balanced Advantage Fund -Reg. (G)

How to Invest in this Fund on Groww?

  • Firstly, log in to your Groww account, sign up and complete KYC if you are a new user
  • In the search bar, type the fund name which is “ L&T Nifty Next 50 Index Fund” in this case
  • On the fund page, you can know all the additional information related to the scheme such as asset allocation, fund managers, holdings and much more
  • Select whether you want to opt for a One-time payment (Lumpsum) or do a SIP and start investing

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