Aditya Birla SL Nifty Next 50 Index Fund
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Business Overview
The Aditya Birla SL Nifty Next 50 Index Fund is designed for investors looking to gain exposure to the next tier of large-cap companies in India. This fund tracks the Nifty Next 50 Index, making it ideal for those seeking long-term capital appreciation through diversified equity investments. It matters as it provides a balanced approach to investing in high-potential stocks that are poised for growth.
- Tracks the Nifty Next 50 Index for broad market exposure
- Ideal for long-term investors seeking capital growth
- Diversifies risk across 50 emerging large-cap companies
- Managed by a trusted financial institution
- Low expense ratio enhances overall returns
Investment Thesis
Aditya Birla SL Nifty Next 50 Index Fund stands out due to its strong promoter group, which enhances credibility and trust. With the digital services sector poised for significant growth, this fund offers an attractive entry point at competitive valuations compared to peers, making it a compelling choice for investors seeking long-term gains.
- Strong backing from the Aditya Birla Group, ensuring reliability and stability.
- Exposure to high-growth digital services sector, capitalizing on emerging trends.
- Attractive valuation metrics compared to similar funds in the market.
- Diversified portfolio aligned with Nifty Next 50, reducing risk while maximizing returns.
- Ideal for investors looking for a blend of growth and stability in their portfolio.
Opportunity vs Risk
- Diversified exposure to Nifty Next 50
- Potential for long-term capital growth
- Low expense ratio compared to peers
- Systematic Investment Plan (SIP) friendly
- Rising interest in index funds
- Market volatility affecting returns
- Limited historical performance data
- Sector concentration risk
- Economic downturn impacts growth
- Regulatory changes in mutual funds
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10BusinessHighThe fund is invested in a diversified portfolio of companies in the Nifty Next 50, which includes sectors poised for growth.
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10GrowthHighThe fund has shown consistent revenue and profit growth due to its exposure to high-growth companies.
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10ProfitabilityHighThe underlying companies generally exhibit strong ROE and OCF, but variability exists.
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8ValuationHighValuation metrics like P/E and P/B are in line with peers, indicating fair pricing.
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7BalanceHighThe fund's underlying companies maintain a reasonable debt/equity ratio and liquidity.
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6GovernanceGoodPromoter holding is stable, but some companies have issues with pledging.
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5DriversGoodGrowth drivers are present, but execution risks remain due to market volatility.
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5TechnicalsGoodMarket sentiment is neutral with moderate liquidity.