SBI Mutual Fund has announced the launch of the SBI Nifty Next 50 Index Fund, an open-ended index scheme that would replicate the performance of the Nifty Next 50 Index, efficiently with relatively lower costs. The NFO will open on April 28 and close for subscriptions on May 11.

According to the press release, the investment objective of the scheme is to provide returns that closely correspond to the total returns of the securities as represented by the underlying index, subject to tracking error. This new scheme would be suitable for investors who are seeking long term capital appreciation, investment in securities covered by Nifty Next 50 Index and gain access to growth of potential market leaders.

Vinay M. Tonse, MD & CEO, said: “As a fund house, we have built a strong franchise in the passive investment space, in addition to our actively managed funds. I believe SBI Nifty Next 50 Index Fund is a good opportunity for those who want to take advantage of the merits of passive investing and at the same time benefit from the growth potential of future market leaders which comprise the underlying index.”