Publish Date:
Aditya Birla Sun Life Mutual Fund has launched a new scheme – Aditya Birla Sun Life Nifty Financial Services ETF.
It is an open-ended exchange traded fund tracking Nifty Financial Services TRI.
Accordingly, the investment objective of the scheme is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Financial Services TRI, subject to tracking errors.
However, the performance of scheme may differ from that of the underlying index due to tracking error. The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
Under normal circumstances, Aditya Birla Sun Life Nifty Financial Services ETF will hold an allocation of 95% to 100% of its assets in Equity & Equity related instruments constituting Nifty Financial Services TRI, and 0% to 5% of its assets in Cash, Money Market & Debt instruments.
As per the Scheme Information Document, since Aditya Birla Sun Life Nifty Financial Services ETF is an exchange traded fund, it will invest in stocks constituting the Nifty Financial Services Index in the similar proportion (weightage) as in the Index and endeavour to track the benchmark index.
The Scheme will be managed passively with investments in stocks in a proportion to the weightage of these stocks in the Nifty Financial Services TRI. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections / redemptions in the Scheme.
Rebalancing of the scheme shall also be carried out whenever there is a change in the underlying index or any change due to corporate action with respect to the constituents of the underlying index within 7 calendar days.
Aditya Birla Sun Life Nifty Financial Services ETF’s performance will be benchmarked against Nifty Financial Services Total Return Index.
The fund will be managed by Mr Lovelish Solanki and Mr Pranav Gupta.
The NFO opens for subscription on July 14, 2022 and closes on July 27, 2022. The scheme will reopen for continuous sale and repurchase Within 5 Business Days from the date of allotment.
The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 500 and in multiples of Rs 100 thereafter.
The scheme does not offer any Plans/Options for investment.
The Units of the Scheme are to be listed on National Stock Exchange of India (NSE) and any other recognised stock exchanges as may be decided by AMC from time to time. The Units of the Scheme may be bought or sold on all trading days at prevailing listed price on such Stock Exchange.