New Fund Offerings (NFOs) are exciting, aren’t they? Recently, BSE has launched a new index; the BSE Sensex Sixty 65:35 Index. The name might be confusing at first, but it is very easy to understand.
What is BSE Sensex Sixty 65:35 Index?
The BSE Sensex Sixty Index tracks the performance of 60 top stocks from BSE 500 Index in the ratio of 65:35. This means that the fund invests 65% of its portfolio in the top 30 BSE stocks, commonly known as Sensex. The remaining, 35% of the portfolio, gets invested in the next 30 stocks i.e. from stocks 31 to 60, as per their market cap.
What is the need for top 60 stocks?
BSE already had its renowned Sensex, which is a pool of its top 30 stocks. The new Sixty Index provides a well-balanced investment approach.
This diversification allows investors like you and me to invest in the top 60 BSE companies to provide a balanced exposure to different segments of the market, making it an attractive option for investors looking for stability and growth. The index is reviewed quarterly and rebalanced annually to ensure it reflects the current market dynamics and the relative performance of its constituents.
The first value date is June 23, 2014 and the value of the index is calculated every day.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions. SBNRI does not intend to predict future returns, please read all related documents before investing.
Frequently Asked Questions
What does Sensex mean?
Sensex is the oldest stock exchange in India, and it was introduced on January 1, 1986. It is also termed as BSE (Bombay Stock Exchange).
Should I invest in Sensex or Nifty?
Sensex comprises of 30 companies and Nifty comprises of 50 companies. Nifty has active traders and high liquidity, but Sensex has provided better returns. So there is no fixed answer, since it depends on your priorities.
Can I invest in Sensex?
Anyone with a demat and trading account can invest in Sensex through index funds such as Sensex Sixty 65:35 Index.
