Nippon Nifty Next 50 Junior ETF

About Nippon India ETF Nifty Next50 Junior BeEs

• Nippon India ETF Nifty Next Junior BeEs is an open-ended scheme, managed by Nippon India mutual fund house.
• It includes the Next 50 large-cap stocks that are potential candidates to be part of the Nifty 50 Index.
• The Nippon India ETF Nifty Nex tJunior BeEs was launched on February 21, 2003.
• The ETF’s assets under management (AUM) stood at ₹4868.06 crore as of June 30, 2024
• Himanshu Mange is the fund manager of Nippon India ETF Nifty Next Junior BeEs.
• The ETF units are listed on the NSE, one can invest by buying units through a demat account.
• The ETF units can be bought and sold at market price during each session.

Investment Objective & Benchmark

• The objective of the Nippon India ETF Nifty Next50 Junior BeES is to replicate the performance of equity securities in the underlying index.
• It is benchmarked against Nifty Next50 TRI.
• This index includes the Next 50 large-cap stocks that are potential candidates to be part of the Nifty 50 Index.
• The ETF provides exposure to a diversified range of sectors, including financial services, capital goods, consumer services and FMCG.
• The diversification of investment allows protection against sectoral risks.
• Since the ETF focuses on companies that are not yet part of the Nifty 50, it offers exposure to stocks with potential for future growth.

Asset Allocation & Portfolio Composition

• The ETF has allocated over 99% of the available funds to investment in equity. The remaining assets are invested in cash and debt instruments.
• The ETF has allocated funds to companies across capitalisations. It has invested nearly 80% of the available assets in giant cap, 10.3% in large-cap and 10.33% in mid-cap companies.
• Top 10 company holdings make up 39.83% of the asset allocation.

Top 10 holdings of stock in ETF:

• Trent Ltd: 5.54%
• Bharat Electronics Ltd: 5.03%
• Hindustan Aeronautics Limited: 4.52%
• Tata Power Co Ltd: 3.42%
• Power Finance Corporation Ltd: 3.23%
• Interglobe Aviation Ltd: 3.22%
• Siemens Ltd: 3.16%
• REC Limited: 2.98%
• Vedanta Limited: 2.94%
• Indian Oil Corporation Limited: 2.79%

Sector-wise fund Allocation:

• Financial Services: 21.95%
• Capital Goods: 14.76%
• Consumer Services: 12.24%
• Fast moving Consumer Goods: 10.07%
• Automobiles and Auto Components: 6.23%
• Oil, Gas and Consumable Fuels: 5.87%
• Power: 5.84%
• Metals and Mining: 4.7%
• Chemicals: 3.83%
• Construction Materials: 3.52%

The scheme yielded a return of 64.43% return in last year as of July 31, 2024, compared to the benchmark index’s return of 64.79%

Since, its inception the Nippon India ETF Nifty Next 50 Junior BeES has delivered annualised returns of 20.66%.