Tata Mutual Fund Files Draft With SEBI for Nifty Next 50 Index Fund

Tata Mutual Fund has submitted draft documents to the Securities and Exchange Board of India (SEBI) for the launch of the Tata Nifty Next 50 Index Fund. The scheme information document is dated August 8, 2025. The draft has been filed in line with SEBI’s mutual fund regulations, accompanied by a due diligence certificate from the asset management company.

Scheme Objective

The fund is an open-ended index scheme to replicate or track the Nifty Next 50 Index (TRI). It will passively invest in equity and equity-related securities that make up the index. Allocation will be at least 95% to index constituents and up to 5% in debt or money market instruments. The fund does not provide any assurance or guarantee of returns.

Subscription and Redemption

During the New Fund Offer (NFO), units will be offered at ₹10 each in cash. Post NFO, the scheme will remain open for continuous sale and repurchase at net asset value (NAV) based prices. The minimum initial investment is ₹5,000, while additional investments can be made from ₹1,000 onwards. Redemptions can be requested for a minimum of ₹500 or 50 units, whichever is lower.

Plans and Options

2 investment routes will be available—Regular Plan (through distributors) and Direct Plan (for direct investors). Both plans will have Growth and Income Distribution cum Capital Withdrawal (IDCW) options. If no option is specified, the default will be Direct Plan – Growth.

Load and Expenses

As per SEBI regulations, no entry load will apply. An exit load of 0.25% will be charged if units are redeemed within 15 days from allotment. The total expense ratio (TER) is capped at 1% of daily net assets for index funds.

Fund Management and Benchmark

The scheme will be managed by Nitin Sharma and Rakesh Prajapati. The benchmark for performance comparison is the Nifty Next 50 Index (TRI). NAVs will be disclosed daily on the Tata Mutual Fund and AMFI websites.

Read More: Upcoming NFOs This Week (Aug 18 – Aug 22, 2025): Key Details & Dates!

Conclusion

The filing of the draft document marks the first step toward the launch of the Tata Nifty Next 50 Index Fund, providing investors access to companies within the Nifty 100 universe, excluding the Nifty 50.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.