NFO Alert: Aditya Birla Sun Life Mutual Fund launches index fund

Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life BSE India Infrastructure Index Fund, an open ended index fund replicating the BSE India Infrastructure Total Return Index.

The new fund offer or NFO of the scheme will open for subscription on November 14 and will close on November 28. The scheme will reopen for continuous sale and repurchase within five business days from the date of allotment.

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The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of securities as represented by the BSE India Infrastructure Total Return Index, subject to tracking errors.

The scheme will be benchmarked against BSE India Infrastructure Total Return Index. The scheme will be managed by Rupesh Gurav

An exit load of 0.05% of applicable NAV for redemption / switch-out of units on or before 30 days from the date of allotment. The exit load will be nil, for redemption / switch-out of units after 30 days from the date of allotment.

The minimum application amount for lumpsum investment is Rs 500 and in multiples of Rs 100 thereafter. For monthly SIP, the application amount is Rs 500 and in multiples of Re 1 thereafter.

The scheme will allocate 95-100% in equity and equity related securities constituting the BSE India Infrastructure Index and 0-5% in debt and money market instruments (including cash and cash equivalent).

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The scheme will follow passive investment strategy and will invest not less than 95% of its corpus in stocks comprising the underlying index and endeavour to track the benchmark index while minimizing the tracking error.

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.

The scheme is suitable for investors who are seeking long term capital growth and want investment in equity and equity related securities covered by BSE India Infrastructure Total Return Index, subject to tracking error. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.