Aditya Birla Sun Life Mutual Fund to launch Aditya Birla Sun Life BSE India Infrastructure Index Fund

A prominent asset management firm in India, Aditya Birla Sun Life Mutual Fund (ABSLMF) is a member of the Aditya Birla Capital group. Founded as a joint venture between Sun Life Financial, Canada, and the Aditya Birla Group, it provides both retail and institutional investors with a broad selection of mutual fund schemes, such as debt, equity, hybrid, and thematic funds.

Aditya Birla Sun Life Mutual Fund launches new fund

The Aditya Birla Sun Life BSE India Infrastructure Index Fund, an open-ended index fund that replicates the BSE India Infrastructure Total Return Index, has been introduced by Aditya Birla Sun Life Mutual Fund. The scheme’s new fund offer, or NFO, will go live for subscriptions on November 14 and run through November 28. Five business days after the date of allocation, the scheme will reopen for continuous sale and repurchase.

The NFO’s objective

The scheme’s investment goal is to generate returns that, before expenses, match the total returns of securities as shown by the BSE India Infrastructure Total Return Index, albeit with tracking errors.

NFO further information

The plan will be evaluated against the BSE India Infrastructure Total Return Index. Rupesh Gurav will oversee the plan. After the allocation date, the units must be exchanged or redeemed within 30 days, with an exit load equal to 0.05% of the relevant NAV. There will not be an exit load if units are exchanged or redeemed more than 30 days after the allocation date. A minimum application amount of Rs 500 is needed for lump sum investments, and multiples of Rs 100 are then needed. A monthly SIP application fee of Rs 500 is required, with subsequent multiples of Rs 1.

The plan will allocate 0-5% to debt and money market instruments (including cash and cash equivalents) and 95-100% to equity and equity-related securities that make up the BSE India Infrastructure Index. In order to track the benchmark index with the least amount of tracking error, the scheme will use a passive investment strategy and allocate at least 95% of its corpus to stocks that make up the underlying index.

Investment strategy in NFO

The goal of the investment strategy would be to minimize tracking error by regularly rebalancing the portfolio while accounting for changes in the weights of the index’s stocks and the scheme’s incremental collections and redemptions.

The plan is appropriate for investors looking for long-term capital growth who wish to invest in stocks and securities linked to stocks that are included in the BSE India Infrastructure Total Return Index, subject to tracking error. The scheme’s riskometer indicates that the principal invested in the scheme will be at “very high” risk.

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.