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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.

What are ESG Funds?

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.

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Investment Strategy

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

Benchmark

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:

  • Stocks should be a part of Nifty 100
  • Companies should have an ESG score.
  • Companies with controversy category 4 and 5 will be excluded. The scale goes from 1 to 5 with 1 being the least controversial. 
  • Companies manufacturing alcohol, tobacco, controversial weapons or the ones which engage in gambling operations are excluded.

Fund Details

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
  • Systematic Investment Plan (SIP)
  • Century SIP (with insurance cover)
  • Systematic Transfer Plan (STP)
  • Systematic Withdrawal Plan (SWP)
Minimum SIP Investment For both monthly and weekly SIPs, minimum 6 instalments of Rs 500 each

Fund Managers

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:

  • Aditya Birla Sun Life Regular Savings Fund and Aditya Birla Sun Life Equity Hybrid ’95 Fund along with Mr Pranay Sinha & Mr Dhaval Shah
  • Aditya Birla Sun Life Equity Savings Fund along with Mr Lovelish Solanki & Mr Pranay Sinha
  • Aditya Birla Sun Life Resurgent India Fund – Series 6 & 7 along with Mr Milind Bafna
  • Aditya Birla Sun Life Equity Advantage Fund

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:

Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.

  • Aditya Birla Sun Life Global Emerging Opportunities Fund
  • Aditya Birla Sun Life Global Real Estate Fund
  • Aditya Birla Sun Life Asset Allocator Multi Manager FoF Scheme
  • Aditya Birla Sun Life Financial Planning FoF
  • Aditya Birla Sun Life Special Opportunities Fund along with Mr Anil Shah & Mr Chanchal Khandelwal.
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