Aditya Birla Mutual Fund is launching a new fund offer for an ESG fund. The fund will open for subscriptions on December 4 and will close on December 18. Here are the details about the fund. Read on!
Please note, the link to invest in this NFO on Groww will be made available from December 4, 2020.
Environmental, social and governance-focused (ESG) funds invest in stocks of companies that do not cause any adverse environmental impact or social risks through its business activities. ESG fund managers mostly avoid companies that manufacture tobacco, alcoholic products or engage in gambling. According to the mutual fund classifications laid out by the Securities and Exchange Board of India (Sebi), ESG funds fall under the thematic fund category.
The Aditya Birla ESG scheme will only invest in companies that follow the environmental, social and governance (ESG) criteria.
| Instruments | Indicative Allocation (% of net assets) | Risk Profile | |
| Minimum | Maximum | High/Medium/Low | |
| Equity & Equity related instruments of companies identified based on the Environmental, Social and Governance (ESG) criteria | 80 | 100 | High |
| Equity & Equity related instruments | 0 | 20 | High |
| Debt and Money market instruments | 0 | 20 | Low to Medium |
| Units issued by REITs and InvITs | 0 | 10 | Medium to High |
The fund’s benchmark is the Nifty 100 ESG TRI index. The companies are a part of the Nifty 100 index but also qualify for the ESG criteria. The weight of each company in the Nifty 100 ESG index is calculated based on the ESG score of the company.
To be eligible for the ESG index, stocks should fulfil the following criteria:
The Aditya Birla ESG fund has direct and regular plans. Under both plans, the scheme has growth and dividend options. Dividend payout and reinvestment options are available.
Here are all the details of the ESG Fund.
| Name of the Fund | Aditya Birla ESG Fund |
| Type of Scheme | An open-ended equity scheme following the Environmental, Social and Governance (ESG) theme |
| Benchmark | Nifty 100 ESG TRI |
| NFO Dates | Opens on December 4, 2020, and closes on December 18, 2020 |
| Fund Manager | Satyabrata Mohanty, Vinod Bhat (for overseas investment) |
| Minimum Application Amount/Minimum Purchase Amount (including switches) | Rs. 500 and in multiples of Re. 1 after that |
| Minimum Additional Investment (including switches) | Rs. 500 and in multiples of Re. 1 after that |
| Minimum Redemption Amount | In Rs: Re 1
or In Units: 0.001 units |
| Entry Load | Nil |
| Exit Load | 1%: For redemption / switch-out of units on or before 90 days from the date of allotment
NIL: For redemption / switch-out of units after 90 days from the date of allotment |
| Plans | Regular Plan and Direct Plan |
| Options | Growth and Dividend Option (Payout, Dividend Reinvestment Option) |
| Facilities Available |
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| Minimum SIP Investment | For both monthly and weekly SIPs, minimum 6 instalments of Rs 500 each |
Satyabrata Mohanty: Mr Mohanty has over 21 years of experience in research and finance Before Aditya Birla Sun Life AMC, he worked with Aditya Birla Management Corporation Ltd.
Other schemes managed by him are:
Vinod Bhat: In case of any overseas investments, Mr Bhat will be managing them. Mr Bhat has 12 years of experience in investment banking and financial markets. He has 18 years of experience overall. He has been working with the AMC since July 2018.
Other schemes managed by him are: