Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund NFO
Aditya Birla Sun Life Mutual Fund has announced the launch of the Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund. The fund is an open-ended scheme that will be replicating the Nifty 50 Equal Weight Index.
The New Fund Offer (NFO) starts on 19th May 2021 and will end on 02nd June 2021. The scheme will reopen for continuous sale and repurchase within 5 business days from the allotment.
Investment Objective
The scheme’s investment objective is to provide long-term capital growth by generating returns closely corresponding to the returns of the securities constituting the Nifty 50 Equal Weight Index.
Features
- The Fund will be investing at least 95% of its assets in securities constituting the Nifty 50 Equal Weight Index.
- The fund offers exposure to all the 50 constituents of the Nifty 50 through a single fund.
- The fund may also take some exposure to money market instruments and units of liquid schemes to manage liquidity.
- Lower expense ratio as compared to other active funds.
What is the Nifty 50 Equal Weight Index?
- The index comprises the top 50 companies in terms of market capitalization.
- All the companies are treated equally and are given equal weightage with a 2% allocation to each.
- The index is rebalanced quarterly and rebalancing leads to auto profit booking.
- The index offers good diversification with top 10 stocks having a weightage of 23% and bottom 10 stocks having a weightage of 18% as of 31st April 2021.
- Nifty 50 Equal weight Index’s smarter asset allocation and auto rebalancing strategy provides for intelligent investing.
Top 5 Constituents of Nifty 50 Equal Weight Index
| Stock | Nifty 50 Equal Weight Index | Nifty 50 Index |
| Reliance Industries | 1.90% | 10.19% |
| HDFC Bank | 1.83% | 9.72% |
| Infosys | 1.93% | 7.93% |
| HDFC | 1.86% | 6.89% |
| ICICI Bank | 1.99% | 6.56% |
| Total | 9.51% | 41.29% |
*As of 30th April 2021
Sector Allocation of Nifty 50 Equal Weight Index
| Sector | Nifty 50 Equal Weight Index | Nifty 50 Index |
| Financial Services | 21.5% | 37.8% |
| Consumer goods | 13.6% | 11.1% |
| Automobile | 11.2% | 5.23% |
| Metal | 9.9% | 3.6% |
| IT | 9.8% | 16.5% |
| Pharma | 8.8% | 3.6% |
| Gas and oil | 7.7% | 11.8% |
| Cement | 5.6% | 2.5% |
| Power | 3.8% | 1.6% |
| Services | 2.0% | 0.8% |
| Telecom | 2.0% | 2.0% |
| Fertilizers | 1.9% | 0.5% |
| Construction | 1.8% | 2.5% |
*As of 30th April 2021
Why invest in Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund?
- Fund gives the opportunity to invest in top 50 large-cap high growth potential companies listed on NSE.
- The underlying fund is an equal-weighted index which makes a diversified portfolio and reduces the concentration and sectoral risk.
- Equal weightage gives equal opportunity to all the stocks to shine in times of growth.
- ‘Smart’ investing strategy allows the fund for periodic profit booking through rebalancing.
- Fund gives opportunity to capitalize on board-based economic growth.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in earning returns that closely correspond to the Nifty 50 Equal Weight Index returns, subject to tracking errors.
- Recommended for investors with an investment horizon of 3-5 years & above.
Asset Allocation Pattern
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Equity securities representing Nifty 50 Equal Weight Index | 95% | 100% | Moderate to High |
| Debt and Money market instruments | 0% | 5% | Low to Moderate |
About the scheme
| Name of the fund | Aditya Birla Sun Life Nifty 50 Equal Weight 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 scheme replicating or tracking Nifty 50 Equal Weight Index |
| Investment Objective | The investment objective of the scheme is to provide long-term capital growth to investors by generating returns closely corresponding to the total returns of securities representing the Nifty 50 Equal Weight Index. |
| Benchmark | Nifty 50 Equal Weight TRI |
| Entry Load | Not Applicable |
| Exit Load | NIL |
| Taxation | Taxed as Equity -If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15% -If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year |
| Minimum Application Amount | ₹ 500 & in multiple of ₹ 1 thereafter |
| Minimum Additional Amount | ₹ 500 & in multiple of ₹ 1 thereafter |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Lovelish Solanki |
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Weekly SIP | 6 | ₹ 500 & in multiples of ₹ 1 thereafter |
| Monthly SIP | 6 | ₹ 500 & in multiples of ₹ 1 thereafter |