Aditya Birla Sun Life MF launches Nifty-50 Equal Weight Index Fund NFO
Aditya Birla Mutual Fund has launched a new fund offer for ABSL Nifty-50 Equal Index Fund. The NFO is open for subscriptions between May 19 and June 2, 2021.
Investment Objective
The fund’s objective is to mimic the securities listed under the Nifty 50 Equal Weight Index and stay in line with the index’s returns.
What Is an Index Fund?
Index funds are mutual funds that imitate the composition of a particular stock market index. Index funds are hence known as passively managed mutual funds. Fund managers cannot decide which stocks will move in and out and how much of the fund’s money will be used to purchase which stock.
Benchmark: NIFTY 50 Equal Weight Index
The scheme will mimic the Nifty 50 Equal Weight Index, the scheme’s benchmark index. The index comprises the same stocks listed in Nifty 50. In the Nifty 50 Equal Weight Index, the difference is the socks are given equal weightage. Each stock is given a 2% allocation.
In Nifty 50, stocks are weighted according to the market capitalization.
Asset Allocation
| Instrument | Risk Profile | Normal Allocation (% of assets) |
| Equity & Equity related securities constituting the Nifty 50 Equal Weight Index | Medium to High | 95% – 100% |
| Debt and Money Market Instruments | Low to Medium | 0% – 5% |
Benchmark
The performance of the scheme will be benchmarked to the performance of Nifty 50 Equal-Weight TRI. It represents an alternative weighting strategy based on its parent index, Nifty 50. The index includes the same companies, Nifty 50 but weighted equally.
Fund Details
| Name of the Scheme | Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund |
| Type of the Scheme | An open-ended scheme tracking Nifty 50 Equal-Weight TR Index |
| NFO Dates | From May 19 to June 2, 2021 |
| Benchmark | Nifty-50 Equal-Weight TRI |
| Fund Managers | Mr. Lovelish Solanki |
| Minimum Amount for Application | Minimum of Rs.500/- and in multiples of Re. 1/- |
| Minimum Additional Application Amount | Additional Purchase: Minimum of Rs.500/- and in multiples of Re.1/- after that. |
| Minimum Redemption Amount | In multiples of Re. 1/- or 0.001 units. |
| Load | Entry load- Nil
Exit load- Nil |
| Plans | Regular Plan and Direct Plan |
| Options | Income Distribution cum Capital Withdrawal Option (“IDCW”), and
Growth Option |
| Minimum SIP amount | Rs. 500/- each and above for a minimum of 6 months |
Fund Manager
Lovelish Solanki: Mr Solanki has an overall experience of over 10 years in dealing and trading. Before working with Aditya Birla Sun Life AMC, Mr Solanki has been associated with Union KBC AMC and Edelweiss AMC.
Names of other schemes under his management
- Aditya Birla Sun Life Equity Savings [email protected]
- Aditya Birla Sun Life Nifty ETF
- Aditya Birla Sun Life Arbitrage Fund
- Aditya Birla Sun Life Gold Fund
- Aditya Birla Sun Life Sensex ETF
- Aditya Birla Sun Life Balanced Advantage Fund#
- Aditya Birla Sun Life Nifty Next 50 ETF
- Aditya Birla Sun Life Banking ETF
#Jointly with Mr Mohit Sharma and Mr Vineet Maloo
@Jointly with Mr Satyabrata Mohanty and Mr Harshil Suvarnkar
