logo

Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund NFO

banner-img
author
verified
Gaurav Seth
20 Likes | 738 days ago

Like

Share

isVerifiedExpertAuthor is a Zfunds Verified Expert
author
Gaurav Seth
Gurugram
whatsapp

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

StockNifty 50 Equal Weight IndexNifty 50 Index
Reliance Industries1.90%10.19%
HDFC Bank1.83%9.72%
Infosys1.93%7.93%
HDFC1.86%6.89%
ICICI Bank1.99%6.56%
Total9.51%41.29%

*As of 30th April 2021

Sector Allocation of Nifty 50 Equal Weight Index

SectorNifty 50 Equal Weight Index Nifty 50 Index
Financial Services21.5%37.8%
Consumer goods13.6%11.1%
Automobile11.2%5.23%
Metal9.9%3.6%
IT9.8%16.5%
Pharma8.8%3.6%
Gas and oil7.7%11.8%
Cement5.6%2.5%
Power3.8%1.6%
Services2.0%0.8%
Telecom2.0%2.0%
Fertilizers1.9%0.5%
Construction1.8%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

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Equity securities representing Nifty 50 Equal Weight Index95%100%Moderate to High
Debt and Money market instruments0%5%Low to Moderate

About the scheme

Name of the fundAditya Birla Sun Life Nifty 50 Equal Weight Index Fund
Fund launched byAditya Birla Sun Life Mutual Fund 
Asset Management CompanyAditya Birla Sun Life AMC Limited 
Type of schemeAn open-ended scheme replicating or tracking Nifty 50 Equal Weight Index
Investment ObjectiveThe 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.
BenchmarkNifty 50 Equal Weight TRI
Entry LoadNot Applicable
Exit LoadNIL
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
  • Regular
  • Direct
Options
  • Growth
  • Payout of IDCW 
  • Reinvestment of IDCW
Fund ManagersMr. Lovelish Solanki

SIP Details

Type Minimum InstallmentsMinimum Amount
Weekly SIP6₹ 500 & in multiples of ₹ 1 thereafter
Monthly SIP6₹ 500 & in multiples of ₹ 1 thereafter

Get Investment Advice from India's Top Experts