There was chaos in the stock market when our IPO market was also deserted. However after the improvement in the stock market, now new issues have started coming in the IPO market. Along with this, new fund offers have also started coming into the mutual fund market. Today, Nippon India Mutual Fund has announced the launch of a new fund offer (NFO) in the passive category. Nippon India BSE Sensex Next 30 Index Fund will be like the BSE Sensex Next 30 Index. This NFO has opened for subscription from today. It will close on June 4, 2025.

Opportunity to invest in blue-chip companies
Whatever the situation in the stock market, it does not make much difference to blue-chip companies. However, common investors cannot know which of these companies should bet on. Mutual fund managers are experts in this field, so they know of it.

What is the BSE Next 30 Index

The BSE Sensex Next 30 Index includes companies that are part of the BSE 100 but not the BSE Sensex. These 30 companies are blue chips, which have the potential to become a part of the motherboard BSE Sensex in the future. In the last 10 years, 20 stocks have moved ahead of the BSE Sensex from the BSE Sensex Next 30. This index covers underrepresented large caps, which is a sweet spot that no other index captures.

Outperforms BSE Sensex
The BSE Sensex Next 30 TRI has consistently outperformed the BSE Sensex, making it an attractive investment option in the ETF category. In the last five years, the index gave a CAGR return of 26%, while the BSE Sensex gave a return of 20.3%. Over three years, the Next 30 index has given a return of 15.7%, while the Sensex has given a return of 13.4%. The BSE Sensex Next 30 index has also outperformed the Nifty 50 and Nifty Next 50 TRI over the last five-year period. In a way, the BSE Sensex Next 30 is a well-diversified index spread across 12 sectors. These include companies like JSW Steel, InterGlobe Aviation, Grasim, ONGC, Bajaj Auto, Adani Enterprises, BPCL, Dr Reddy's Laboratories and Wipro.

What is the benefit of this fund?

The benefit of investing in Nippon India BSE Sensex Next 30 Index Fund is that ETFs offer low-cost benefits and investors get the convenience of trading their units like any other stock. Moreover, those who do not have a demat account can also invest through the index fund route and invest in large-cap stocks by investing in Nippon India BSE Sensex Next 30 Index Fund. Market experts point out that investing in BSE Sensex Next 30 Index Fund at this time can prove to be a good opportunity, as the BSE Sensex Next 30 Index is trading at an attractive discount of 7% below its 10-year historical average.

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