Nippon Life India AMC launches two new passive funds targeting BSE Sensex Next 30

Nippon Life India Asset Management (NAM India), one of the country’s leading asset managers, announced the launch of two new passive investment products—the Nippon India BSE Sensex Next 30 Index Fund and the Nippon India BSE Sensex Next 30 ETF—providing investors with strategic exposure to India’s next-generation large-cap companies.

Both offerings will track the BSE Sensex Next 30 Index, which comprises companies ranked just beyond the traditional BSE Sensex constituents. These funds aim to deliver cost-efficient, rules-based access to a relatively under-represented segment within India's large-cap equity market.

The New Fund Offer (NFO) for both products opens on May 21, 2025, and closes on June 4, 2025, with a minimum investment requirement of ₹1,000.

According to NAM India, the BSE Sensex Next 30 Index provides a well-diversified portfolio of 30 stocks across 12 sectors. On an average rolling return basis, the index has delivered about 17% returns over one year, outperforming the BSE Sensex TRI by approximately 3%. Over the past five years, the index has clocked a CAGR of approximately 26%, compared to the Sensex TRI’s of about 20%, and has yielded positive returns in nine out of the last 11 calendar years.

The key features of the Index Fund include rules-based diversification, which eliminates non-systematic risks such as stock picking and manager bias, and covers high-potential large caps not included in the BSE Sensex. On the other hand, the ETF allows intraday trading flexibility and real-time pricing, while maintaining low total expense ratios and tracking the same index.

Commenting on the launch, Arun Sundaresan, Head – ETF at NAM India, said, “These schemes provide access to a lesser-explored segment of large caps with strong potential through a low-cost, passive approach… As the Indian equity landscape broadens, such differentiated strategies can play a core role in long-term portfolios.”

With over 23 years of experience in the passive investing space, NAM India now manages 24 ETFs and 26 index funds/FoFs, with passive AUM exceeding ₹1.93 lakh crore as of May 2025.