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Aditya Birla SunLife Mutual Fund launching a new ETF NFO: Aditya Birla Sun Life Nifty Financial Services ETF.

Aditya Birla Mutual Fund is launching an ETF, The Aditya Birla Sun Life Nifty Financial Services ETF, that invests in the growing financial services sector of India.

The New Fund Offer (NFO) period for the Aditya Birla Sun Life Nifty Financial Services ETF is from July 14th 2022 to July 27th 2022.

Objective

The Aditya Birla Sun Life Nifty Financial Services ETF aims to provide returns (before expenses) that closely correspond to the overall returns of the securities as in the Nifty Financial Services TRI, subject to tracking errors. However, the scheme’s performance may differ from that of the underlying index due to tracking errors. Furthermore, the Scheme does not guarantee/indicate any returns. Thus, there can be no assurance that the scheme’s investment objective will be achieved.

Fund Details

Aditya Birla Sun Life Nifty Financial Services ETFDetails
NFO Opening DateJuly 14th 2022
NFO Closing DateJuly 27th 2022
Indicative Re-open DateAugust 3rd 2022
Type of FundOpen-ended ETF scheme
Fund ManagerMr Lovelish SolankiMr Pranav Gupta
Minimum Investment AmountINR 500
Minimum Additional Purchase AmountINR 100
Exit LoadNil
SuitabilityVery High
BenchmarkNifty Financial Services TRI
Plans and OptionsNot Available. The AMC/Trustee reserves the right to introduce Plan(s)/Option(s) as may be deemed appropriate later.

Who Can Invest?

Aditya Birla Sun Life Nifty Financial Services ETF is an open-ended scheme that invests in financial services stocks. The ETF aims to track the Nifty Financial Services Index closely. Nifty Financial Services Index aims to closely track the performance of stocks that broadly represent the financial services theme.

Since the ETF fund invests across stocks belonging to the financial sector in India, it is a high-risk investment. Thus, it is aimed at investors seeking long-term wealth creation.

Therefore, investors seeking exposure to the financial sector can consider the scheme. However, one must have a long-term investment horizon (5+ years).

Popular Funds by the Aditya Birla Mutual Funds

Fund Manager

Mr Lovelish Solanki

Mr Lovelish Solanki has been associated with ABSL AMC since 2014 and is currently the Fund Manager at the firm. He has more than a decade of experience in fund management and research, both in Equity and Debt. Prior to joining ASBL, he was with  Union KBC Asset Management Co Limited and Edelweiss Asset Management Co. Ltd. Furthermore, Mr Solanki holds a Master’s degree in Management Studies from Mumbai University with a specialization in Finance. He is also a CMT (Chartered Market Technician) Level 1 certified candidate (2012).

Mr Pranav Gupta

Mr Pranav Gupta has more than 4 years of experience in the capital market across segments such as alternative research and derivative sales trading. Prior to joining ABSLAMC, he was with Centrum Broking Limited and has also worked with OHM Stock Broker Pvt. Ltd. Mr Gupta holds Masters of Management Studies in Finance from N.L. Dalima Institute of Management Studies and Research and also a BE in Electrical Instrumentation from the University of Mumbai.

Asset Allocation

Aditya Birla Sun Life Nifty Financial Services ETF invests in the same stocks as the Nifty Financial Services Index. The following is the indicative asset allocation of the fund.

Types of InstrumentsIndicative Allocation MinimumIndicative Allocation MaximumRisk Profile
Equity & Equity related instruments constituting Nifty FinancialServices TRI95%100%Medium to High
Cash, Money Market & Debt instruments05%Low to Medium

Concluding Remarks

Aditya Birla Sun Life Nifty Financial Services ETF invests across stocks belonging to the financial services sector. Aditya Birla Sun Life Nifty Financial Services ETF aims to replicate the Nifty Financial Services Index performance. ABSL Nifty Financial Services ETF fund primarily invests in the same stocks and in the same proportions as the Nifty Financial Services Index. It is classified as a very high-risk investment option based on the riskometer since the fund only gets exposure to the financial sector. Investors must have a long-term investment approach.

The weightage of a single stock in the Nifty Financial Services Index shall not exceed 33%. Also, the cumulative weight of the top 3 stocks shall not be more than 62% at the rebalancing time. Moreover, the index is rebalanced and reconstituted semi-annually. Thus, the ETF scheme will also be re-balanced or reconstituted within 7 days.

Investors who understand the financial services sector and can monitor the performance may consider this scheme. Furthermore, the scheme is aimed at investors looking for exposure to the financial services sector. Since it is a pure equity scheme and financial services sector-focused, a long-term investment horizon is advised.

Frequently Asked Questions

How Can I Invest in the Aditya Birla Sun Life Nifty Financial Services ETF NFO?

You can invest in the Aditya Birla Sun Life Nifty Financial Services ETF NFO through any of the following methods:
Offline: By filling out the ABSL AMC ETF NFO application and submitting it along with all documents and cheques to the nearest Investor Service Center of CAMS or ABSL mutual fund office.
Online:
1. ABSL Mutual Fund Website
2. Online FinTech platforms and mutual fund platforms
3. Through demat account
4. Through a mutual fund distributor or agent

When will the scheme open for ongoing subscriptions, switches and redemptions?

The index fund will re-open for subscriptions, switches and redemptions within 5 days from the date of allotment.

Is Aditya Birla Sun Life Nifty Financial Services ETF risky?

As per the riskometer, it is a very high-risk investment. Aditya Birla Sun Life Nifty Financial Services ETF is a pure equity mutual fund that invests in stocks across the financial services sector. Thus, the scheme falls under the very high-risk category. Therefore, investors must understand the risk associated with thematic/sector-focused investments. Also, note that the scheme doesn’t guarantee any returns.

Is there a lock-in period for Aditya Birla Sun Life Nifty Financial Services ETF?

No, Aditya Birla Sun Life Nifty Financial Services ETF doesn’t have a lock-in period. Since the ETF units get listed on the stock market, they can be traded.