Publish Date:
Aditya Birla Sun Life Mutual Fund has launched a new scheme - Aditya Birla Sun Life Nifty Healthcare ETF.
It is an open-ended Exchange Traded Fund that will track the NIFTY Healthcare TRI.
Accordingly, the investment objective of the scheme is to provide returns that before expenses, closely correspond to the total returns of securities as represented by Nifty Healthcare 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 the scheme will invest 95% to 100% of its assets in Equity and Equity related instruments constituting Nifty Healthcare TRI. A very small portion (0% to 5% of its assets) may be kept in Cash, Money Market & Debt instruments.
Accordingly, Aditya Birla Sun Life Nifty Healthcare ETF would invest predominanlty in stocks comprising the underlying NIFTY Healthcare Index and shall endeavor to track the benchmark index. The Scheme may also invest in debt and money market instruments, in compliance with Regulations to meet liquidity and expense requirements.
As per the scheme information document, Aditya Birla Sun Life Nifty Healthcare ETF will be managed passively with investments in stocks in a proportion to the weightage of these stocks in the Nifty Healthcare TRI.
The investment strategy of Aditya Birla Sun Life Nifty Healthcare ETF 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.
Since Aditya Birla Sun Life Nifty Healthcare ETF is an exchange traded fund, it will only invest in the securities constituting the underlying index. However, due to corporate action in companies comprising of the index, the Scheme may be allocated/allotted securities which are not part of the index. 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 days.
Aditya Birla Sun Life Nifty Healthcare ETF may also invest in debt/ money market instruments, in compliance with Regulations to meet liquidity and expense requirements.
Aditya Birla Sun Life Nifty Healthcare ETF’s performance will be benchmarked against NIFTY Healthcare - TRI (Total Return Index).
Aditya Birla Sun Life Nifty Healthcare ETF will be managed by Mr Lovelish Solanki.
The NFO opens for subscription on October 08, 2021, and closes on October 20, 2021. The scheme will reopen for continuous sale and repurchase within five Business Days from the date of allotment.
The minimum subscription amount is Rs 500 and in multiples of Rs 100 thereafter.
The Units of the Scheme will be listed on National Stock Exchange of India (NSE) and/or 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.