Aditya Birla Sun Life Nifty Next 50 Index Fund - (An Open-ended Scheme tracking Nifty Next 50 Index)
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Get exposure to the torch bearers of Indian economy! Aditya Birla Sun Life Nifty Next 50 Index Fund (An Open-ended Scheme tracking Nifty Next 50 Index) NFO Opens on: January 31, 2022 NFO Closes on: February 14, 2022 Aditya Birla Sun Life AMC Limited 1
A good time to buy large caps
Average % of Large Cap Exposure of Flexi Cap Funds in India
76.0 74.6
73.1 73.8
74.0 72.3
71.7
72.0 70.5 70.8
70.0
68.0 66.4
66.0
64.0 63.3
62.0
60.0
58.0
56.0
Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
• Post Covid, focus on large caps is only increasing as the economy increasingly becomes more formalized
• Large caps portray reasonably stable business profiles with focus on high corporate governance
• Offer greater liquidity – investments in large caps are liquid and good to have esp. in volatile times
• Well diversified & discovered space
Options to undertake exposure in the large cap space:
Nifty 50 + Nifty Next 50
Source: Morningstar (As on Dec 31, 2021) // Note: The above graph represents the average asset allocation in large cap stocks, amongst all the flexi cap funds present in India (market capitalization
categorization by AMFI)
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Aditya Birla Sun Life AMC LimitedNifty Next 50 – Sweet Spot between Bluechip Largecaps & High Growth Midcaps
Blue Chip Large Caps representing existing sectoral leaders
Nifty 50
with high corporate governance, liquidity, stability
(₹1.6 Lakh Cr)
Nifty Next 50 Sweet Spot – Potential future blue chips, relatively well
(₹25.8k Cr) discovered companies, familiar brands with growth potential
Nifty 500
(₹24.1k Cr) Nifty Midcap 150 Emerging companies with high growth potential, relatively
under researched, involves higher risk compared to largecaps
(₹11.9k Cr)
Nifty Smallcap 250 Small cap companies have high growth but risk, low liquidity,
transparency & relatively weaker competitive advantage
(₹3.0k Cr)
Source: NSE, As on Jan 15, 2022 ; The figures denote the approximate average market capitalization of all the companies in that respective index.
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Aditya Birla Sun Life AMC LimitedNifty Next 50 – Emerging Future Bluechips
Stocks entering Nifty 50 from Nifty Next 50 Recent inclusions in Nifty 50 from Nifty Next 50
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Year Name
6
6 Indiabulls Housing Finance Ltd
Indian Oil Corporation Ltd
5 Vedanta Ltd
5 2017
Bajaj Finance Ltd
4 4 4 4 Hindustan Petroleum Corporation Ltd
4
No. of Stocks
UPL Ltd
Bajaj Finserv Ltd
3 3 3 3
3 2018 Titan Company Ltd
JSW Steel Ltd
2 2 2 2019 Britannia Industries Ltd
2
Shree Cement Ltd
1 1 1 1 HDFC Life Insurance Company Ltd
2020
1 Divi's Laboratories Ltd
SBI Life Insurance Company Ltd
0 2021 Tata Consumer Products Ltd
2002 2003 2004 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Over the last 19 years, majority of inclusion in the NIFTY 50 Index are from NIFTY Next 50 Index
From Jan 2002 – March 2021, Out of 75 stocks included in NIFTY 50 index, 51 stocks have been from NIFTY Next 50 Index
Source: NSE Indices // As on Dec 31, 2021
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Aditya Birla Sun Life AMC LimitedA Better distributed Index
Nifty 50 Nifty Next 50
The index is not concentrated towards the
top 10 holdings unlike Nifty 50.
At the same time, it is well distributed in
the bottom 10 too (11% vs 5% in Nifty 50) Top 10 59% 41% Rest 40 Top 10 34% 66% Rest 40
Index Weight Distribution
Bottom 10 4.9
11.0
Top 3 28.4
11.7
Top 5 41.7
18.7
Top 10 58.8
34.2
Top 20 77.3
57.6
0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0
Nifty 50 Nifty Next 50
Nifty 50 has a high concentration towards its top constituents, Nifty Next 50 is more equitably distributed
Source: NSE, As on Jan 15, 2022; Market capitalization refers to free-float market capitalization taken for the purpose of weight age calculation in the Nifty Index
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Aditya Birla Sun Life AMC LimitedBetter sectoral diversification
Sectoral Index Distribution
40.0 36.3
35.0
30.0
25.6
25.0
20.0 20.1
20.0 18.5
15.4
15.0 12.6 11.7
10.0 6.4 6.9
4.9 4.8
5.0 2.5 3.2 3.1 2.1 1.7 1.7 0.7 1.6
0.0
Nifty 50 Nifty Next 50
• Nifty 50 has a high concentration towards its top sectors (Financial Services + IT ~ 55%), Nifty Next 50 is much more
balanced across sectors
• Higher exposure to sunrise & growth sectors like Consumer, Healthcare & Commodities
Source: NSE, As on Jan 15, 2022
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Aditya Birla Sun Life AMC LimitedBetter Representation of Commodities
Sub-sectors in Commodities ~ 6% in Nifty 50 Sub-sectors in Commodities ~ 20% in Nifty Next 50
Industrial Minerals Industrial Minerals
Pesticides And Trading - Minerals/
7% 6%
Agrochemicals Mining
9% Steel 20%
13%
Steel
32%
Aluminium Pesticides And
14% Agrochemicals
9%
Aluminium
17%
Cement
19% Chemicals -
Cement Speciality
38% 16%
Better & balanced distribution of sub-sectors in the commodities sector
Source: NSE, As on Jan 15, 2022
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Aditya Birla Sun Life AMC LimitedBetter Representation of Consumer Sector
Sub-sectors in Consumer Sector ~15% in Nifty 50 Sub-sectors in Consumer Sector ~26% in Nifty Next 50
Gems Jewellery Tea & Coffee
Paints
And Watches 4% Passenger/Utility
Brew/Distilleries 6%
9% Vehicles
9%
23%
Consumer Food
9% Consumer
Personal Care
Electronics
38%
10%
Motor
Cycles/Scooters
10% Restaurants
9%
Diversified
17%
Paints
12% Cigarettes & Diversified Retail E-Retail/ E-
Related Products 15% Commerce
16% 13%
Better & balanced distribution of sub-sectors in the consumer sector
Source: NSE, As on Jan 15, 2022
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Aditya Birla Sun Life AMC LimitedSummary of Advantages: Nifty Next 50
Exposure to potential Better risk adjusted
market leaders long run performance
Opportunity for High Better sectoral
growth & capital representation
appreciation
Nifty Next 50
Pre-dominantly Less top-10 holdings
large-caps concentration than Nifty 50
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Aditya Birla Sun Life AMC LimitedPerformance of Nifty Next 50
Rolling Returns
25.0
21.4 21.8
20.0 18.9 18.8 18.4
18.2
16.4 16.8
16.0 15.9 16.0
15.0 14.3 14.5 14.3 14.4
13.6 13.3 13.5
12.5 12.2
10.0
5.0
0.0
1 Year 3 Years 5 Years 10 Years
Nifty 100 TRI Nifty 200 TRI Nifty 50 TRI Nifty Midcap 150 TRI Nifty Next 50 TRI
Rolling returns (a measure of consistent returns) depict the outperformance of the Nifty Next 50 index from other broad-based
indices across time frames consistently
Source: MFIE (As on Jan 15, 2022) // Rolling period from Apr 01, 2005 till Jan 15, 2022 / Note: Past performance may or may not be sustained in the future
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Aditya Birla Sun Life AMC LimitedPerformance of Nifty Next 50 (contd.)
Value of 1 Lakh invested on 8th November 2002
50
45
Value of ₹1 lakh invested in Nov 2002 is ₹44.5 lakhs today 21.8%
40
35
30
25
18.2%
20
15
10
5 Value of ₹1 lakh invested in Nov 2002 is ₹24.7 lakhs today
0
Nov-02 Nov-03 Nov-04 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Nov-21
Nifty 50 TRI Nifty Next 50 TRI
Source: MFIE, As on Jan 15, 2022 / Note: Past performance may or may not be sustained in the future.
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Aditya Birla Sun Life AMC LimitedIntroducing
Aditya Birla Sun Life
Nifty Next 50 Index Fund
(An Open-ended Scheme tracking Nifty Next 50 Index)
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Aditya Birla Sun Life AMC LimitedWhy invest in Aditya Birla Sun Life Nifty Next 50 Index Fund?
Helps in capital appreciation Large cap equity exposure
It helps in capital appreciation over the
To take exposure in large cap equity
long term. Investors are protected from
short term volatility
Why invest? at reasonable costs
No DEMAT required Eliminate unsystematic risk
No requirement of demat To eliminate risk pertaining to a
accounts & investments can be particular company or sector, fund
made at low minimum amounts. manager selection
Diversification Invest in equity through SIP
Exposure to segments of markets To take exposure in equities without
and also market as a whole trading actively and the scheme offers
SIP, SWP, STP facilities also
First time investors in equities, willing to participate through index investing route
Suitable for: Existing investors looking to complement their core equity portfolio with passive investment
Financial Institutions, Treasuries, Provident Funds, Insurance Companies
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Aditya Birla Sun Life AMC LimitedScheme Features
Name of the Scheme Aditya Birla Sun Life Nifty Next 50 Index Fund
Type of the scheme An open-ended scheme tracking the Nifty Next 50 Index
The investment objective of the scheme is to provide returns that closely track the total returns of securities as represented by Nifty Next 50
Investment Objective Index, subject to tracking errors. The Scheme does not guarantee/indicate any returns. There can be no assurance that the objective of the
Scheme will be achieved.
The Scheme would invest not less than 95% of its corpus in stocks comprising the underlying index and endeavour to track the benchmark
Investment Strategy index while minimizing the tracking error and therefore would follow a passive investment strategy. The scheme would also aim to maintain
least amount of cash & equivalents in order to manage its liquidity requirements
Expenses charged As per SEBI regulations
Normal Allocation (% of total
Instruments Risk profile
Assets)
Asset Allocation Equity & Equity related instruments constituting the Nifty Next 50 Index Moderate 95% - 100%
Debt and Money Market Instruments Low 0% - 5%
Plans Offered Regular and Direct
Options Offered Growth & Income Distribution cum capital withdrawal (IDCW) in both Regular and direct plans
Minimum Application ₹100 and in multiples of ₹1 thereof
Benchmark Index Nifty Next 50 TRI
Load 0.25% if redeemed/switch out of units before 3 days from the date of allotment.
Fund Manager Lovelish Solanki & Kedarnath Mirajkar
For more information refer SID and KIM of the Scheme
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Aditya Birla Sun Life AMC LimitedProduct Labelling
This product is suitable for investors who are seeking*: Riskometer Benchmark Riskometer – Nifty Next 50 Index
• Capital appreciation over the long term
Moderate Moderately Moderate Moderately
• A Scheme that invests in equity and equity High High
related securities and replicates the Low to
Moderate High Low to
Moderate High
composition of the Nifty Next 50 Index
Low Very High Low Very High
RISKOMETER RISKOMETER
*Investors should consult their financial advisors if in doubt whether the Investors understand that their principal Investors understand that their principal
product is suitable for them. will be at Very High risk will be at Very High risk
The product labelling assigned during the NFO is based on internal assessment of the Scheme characteristics or model portfolio and the same may vary post
NFO when the actual investments are made.
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Aditya Birla Sun Life AMC LimitedTHANK YOU!
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Aditya Birla Sun Life AMC LimitedAnnexure – Index Constituents
Name of the constituents Weightage (%) Name of the constituents Weightage (%)
Adani Enterprises Ltd. 4.0 PI Industries Ltd. 1.7
Adani Green Energy Ltd. 3.9 Indus Towers Ltd. 1.7
Avenue Supermarts Ltd. 3.8 Siemens Ltd. 1.6
Apollo Hospitals Enterprise Ltd. 3.8 Hindustan Petroleum Corporation Ltd. 1.6
Info Edge (India) Ltd. 3.4 Interglobe Aviation Ltd. 1.6
Vedanta Ltd. 3.3 Bajaj Holdings & Investment Ltd. 1.6
Adani Transmission Ltd. 3.2 Bandhan Bank Ltd. 1.6
Pidilite Industries Ltd. 3.2 Acc Ltd. 1.6
Icici Lombard General Insurance Company Ltd. 2.8 Colgate Palmolive (India) Ltd. 1.5
Piramal Enterprises Ltd. 2.8 Aurobindo Pharma Ltd. 1.5
Godrej Consumer Products Ltd. 2.7 Berger Paints India Ltd. 1.5
Havells India Ltd. 2.6 Bank Of Baroda 1.4
Dabur India Ltd. 2.6 Jindal Steel & Power Ltd. 1.3
Larsen & Toubro Infotech Ltd. 2.5 Biocon Ltd. 1.3
Ambuja Cements Ltd. 2.3 Nmdc Ltd. 1.3
Jubilant Foodworks Ltd. 2.3 HDFC Asset Management Company Ltd. 1.3
United Spirits Ltd. 2.2 Muthoot Finance Ltd. 1.3
Gail (India) Ltd. 2.0 Indraprastha Gas Ltd. 1.2
DLF Ltd. 2.0 Torrent Pharmaceuticals Ltd. 1.2
Marico Ltd. 2.0 Steel Authority Of India Ltd. 1.2
ICICI Prudential Life Insurance Company Ltd. 1.9 Bosch Ltd. 1.2
Cholamandalam Investment And Finance Company Ltd. 1.8 Gland Pharma Ltd. 1.1
SBI Cards And Payment Services Ltd. 1.8 Yes Bank Ltd. 1.1
Lupin Ltd. 1.8 Punjab National Bank 0.9
Source: NSE Indices (As on Jan 15, 2022) 17
Aditya Birla Sun Life AMC LimitedDisclaimer
Past performance may or may not be sustained in the future. For more details, please refer the SID / KIM of the scheme.
Issuer(s) / Stock(s) mentioned in the document are for the purpose of disclosure of the portfolio of the Scheme(s) and should not be construed as recommendation. The fund manager(s) may or may
not choose to hold the stocks mentioned, from time to time.
NSE disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved
by NSE nor does it certify the correctness or completeness of any of the contents of the Draft Scheme Information Document. The investors are advised to refer to the Scheme Information Document
for the full text of the 'Disclaimer Clause of NSE’.
Risk Factors: Aditya Birla Sun Life AMC Limited is not liable or responsible for any loss or shortfall resulting from the operation of the scheme. This document represents the views of Aditya Birla Sun
Life AMC Limited and must not be taken as the basis for an investment decision. Neither Aditya Birla Sun Life Mutual Fund, Aditya Birla Sun Life AMC Limited, its Directors or associates shall be liable
for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or
fairness of the information and opinions contained herein. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time.
Aditya Birla Sun Life AMC Limited /Aditya Birla Sun Life Mutual Fund is not guaranteeing/offering/communicating any indicative yield/returns on investments. The document is solely for the
information and understanding of intended recipients only. If you are not the intended recipient, you are hereby notified that any use, distribution, reproduction or any action taken or omitted to be
taken in reliance upon the same is prohibited and may be unlawful. Wherever possible, all the figures and data given are dated, and the same may or may not be relevant at a future date. In the
preparation of the material contained, ABSLAMC has used information that is publicly available including information developed in-house. Information gathered and material used in this document is
believed to be from reliable sources. Further the opinions expressed and facts referred to in this document are subject to change without notice and ABSLAMC is under no obligation to update the
same. While utmost care has been exercised, ABSLAMC or any of its officers, employees, personnel, directors make no representation or warranty, express or implied, as to the accuracy,
completeness or reliability of the content and hereby disclaim any liability with regard to the same. Recipients of this material should exercise due care and read the scheme information document
(including if necessary, obtaining the advice of tax/legal/accounting/financial/other professional(s) prior to taking of any decision, acting or omitting to act. Further, the recipient shall not
copy/circulate/reproduce/quote contents of this document, in part or in whole, or in any other manner whatsoever without prior and explicit approval of ABSLAMC. Investment in Mutual Funds
Schemes carry high risk. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same and the Fund may or may not have any
future position in these sector(s)/stock(s)/issuer(s).
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.
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