The SBI Nifty Next 50 ETF (SETFNN50) is an Exchange-Traded Fund (ETF) offered by SBI Mutual Fund, one of India’s largest mutual fund companies. This ETF is designed to replicate the performance of the Nifty Next 50 Index, which represents the next 50 companies after the Nifty 50 in terms of market capitalization.
Key Features:
Underlying Index:
- Tracks the Nifty Next 50 Index, which includes large and mid-cap companies that are potential candidates to enter the Nifty 50 in the future.
Objective:
- To provide returns that closely correspond to the performance of the Nifty Next 50 Index, subject to tracking error.
Portfolio Composition:
- Diversified across multiple sectors, offering exposure to a wide range of industries.
- Constitutes stocks with strong growth potential and future blue-chip characteristics.
Expense Ratio:
- Typically low, making it a cost-effective option for long-term investors.
Liquidity:
- Traded on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), ensuring ease of buying and selling during market hours.
Risk:
- Medium to high, as it is equity-focused. The companies in the Nifty Next 50 are relatively less stable compared to those in the Nifty 50.
Benefits:
Growth Potential:
- The ETF focuses on companies with the potential to move into the Nifty 50 index, offering higher growth opportunities.
Diversification:
- Invests in a wide range of sectors and industries, reducing company-specific risks.
Cost-Effectiveness:
- Being passively managed, it has a lower expense ratio compared to actively managed funds.
Transparency:
- The portfolio is directly linked to the Nifty Next 50, providing clear visibility of holdings.
Recent Performance (as of Dec 2024):
- 1-Year Return: Approximately 15%-20% (subject to market fluctuations).
- 3-Year CAGR: Around 13%-15%.
- 5-Year CAGR: Approximately 12%-14%.
How to Invest:
Trading Platforms:
- You can buy or sell units through any Demat account and trading platform, such as Zerodha, Groww, or Upstox.
Minimum Investment:
- The minimum is typically the price of one unit of the ETF.
Mode of Purchase:
- Stock Exchange: Like any other stock.
- Fund House: Directly from SBI Mutual Fund in certain cases (usually in larger lot sizes).
Suitability:
- Ideal for long-term investors seeking exposure to high-growth potential stocks.
- Suitable for those comfortable with moderate to high risk and a diversified equity portfolio.
Key Considerations:
- Tracking error: The ETF may not exactly match the index’s returns due to operational costs.
- Volatility: Stocks in the Nifty Next 50 index can be more volatile than the Nifty 50.
SBI NIFTY NEXT 50 ETF Share Price
As of December 16, 2024, the SBI Nifty Next 50 ETF (SETFNN50) closed at ₹773.09 on the National Stock Exchange (NSE).
Over the past 52 weeks, the ETF’s price has ranged from a low of ₹527.80 to a high of ₹825.60.
The ETF’s Net Asset Value (NAV) is ₹770.30, with an expense ratio of 0.15%.
The fund’s assets under management (AUM) stand at approximately ₹3,019 crore.
The ETF’s portfolio includes 50 stocks, with top holdings in companies such as Hindustan Aeronautics (4.51%), Divi’s Laboratories (4.16%), and Vedanta (4.08%).
Please note that ETF prices are subject to market fluctuations. For the most current information, it’s advisable to consult real-time financial platforms or your brokerage service.
SBI Nifty Next 50 ETF Returns
The SBI Nifty Next 50 ETF has shown promising performance over various time horizons, closely tracking the Nifty Next 50 Index. Below are the typical returns for this ETF based on historical data (as of December 2024):
Performance
| Time Period | Absolute Return (%) | CAGR (%) |
| 1-Year | ~16% | ~16% |
| 3-Year | ~46% | ~13.5% |
| 5-Year | ~80% | ~12.5% |
| 10-Year | ~250% | ~13% |
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