Aditya Birla Sun Life Nifty Smallcap 50 Index Fund NFO
Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla Sun Life Nifty Smallcap 50 Index Fund. The scheme would be investing its assets in the securities of the top 50 smallcap companies out of the universe of the 250 smallcap companies.
The New Fund Offer (NFO) starts from 15th March 2021 and will end on 26th March 2021. The fund will reopen for continuous sale and repurchase within 5 business days of allotment. The date of unit allotment is 01st April 2021.
The investment objective of the scheme is to provide long-term capital growth by generating returns closely corresponding to the returns generated by securities representing the Nifty Smallcap 50 Index, less any tracking errors.
- The fund will be investing a minimum of 95% of its assets in the securities of the Nifty Smallcap 50 Index.
- It aims to generate returns by replicating or tracking the Nifty Smallcap 50 Index.
- The fund may also have small exposure to debt and money market instruments to maintain liquidity.
- The scheme offers exposure to the top 50 small-cap companies out of 250 small-cap companies.
- The fund will have a low expense ratio as it is a passive/Index fund.
Why invest in Index Fund?
- Index funds are a simple and best way to participate in the equity markets.
- Index funds are a hassle-free investment solution for a novice investor.
- These funds give higher diversification with lower minimum investments.
- Provides good liquidity to the investors.
- The passive management strategy lowers the fund manager risk and also lowers the costs for investors.
Benefits of Aditya Birla Sun Life Nifty Smallcap 50 Index Fund
- Access to high growth business: It offers an opportunity to investors to invest in emerging companies of high growth sectors.
- Balancing of risk with growth potential: It gives the opportunity to invest in companies that have the potential to achieve accelerated growth.
- Natural selection: Top 50 smallcap companies are selected out of the universe of the 250 smallcap companies along with maintaining diversification.
Why invest in Aditya Birla Sun Life Nifty Smallcap 50 Index Fund?
- The fund provides exposure to emerging & high-growth businesses.
- It is a favorable period for midcaps & small-cap companies to outperform as India is witnessing a sharp economic recovery.
- The focused approach on natural selection of Top 50 companies from the Smallcap 250 universe for the index provides exposure to most liquid companies.
- The fund can help to benefit from the growth story of small caps. Small-cap companies have the potential to become midcaps of tomorrow.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in investments in emerging companies.
- Interested in investments in companies that have the potential to achieve accelerated growth.
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern
|Instruments||Minimum % of total assets (Indicative)||Maximum % of total assets (Indicative)||Risk Profile|
|Equity and Equity related securities representing the Nifty Smallcap 50 Index||95%||100%||Moderate to High|
|Debt securities and Money Market Instruments||0%||5%||Low to Moderate|
About the Scheme
|Name of the fund||Aditya Birla Sun Life Nifty Smallcap 50 Index Fund|
|Fund launched by||Aditya Birla Sun Life Mutual Fund|
|Asset Management Company||Aditya Birla Sun Life AMC Limited|
|Type of scheme||An open-ended index fund tracking or replicating the Nifty Smallcap 50 TR Index|
|Investment Objective||The investment objective of the scheme is to generate long-term capital growth by investing its assets in securities constituting the Nifty Smallcap 50 index.|
|Benchmark||Nifty Smallcap 50 TRI|
|Entry Load||Not Applicable|
0.5% of applicable NAV - If units are redeemed or switched out within 90 days.
Nil - If units are redeemed or switched out after 90 days.
|Minimum Application Amount||₹ 500 & in multiples of ₹ 1 thereafter|
|Minimum Additional Amount||₹ 500 & in multiples of ₹ 1 thereafter|
|STP, & SWP||Available|
|Fund Managers||Mr. Lovelish Solanki|
|Type||Minimum Installments||Minimum Amount|
|Weekly SIP||6||₹500 & in multiples of ₹1 thereafter|
|Monthly SIP||6||₹500 & in multiples of ₹1 thereafter|
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