New Fund Offer: Aditya Birla Sun Life Asset Management Company has made a strategic announcement regarding the introduction of a new financial product. Aditya Birla Sun Life Nifty India Defence Index Fund, is an open-ended index fund meticulously designed to mirror the performance of the esteemed Nifty India Defence Index. Interested investors are notified that the subscription for this promising fund is slated to commence from August 9 and will remain open until August 23, offering a limited window of opportunity to participate in this enriching investment opportunity.
Founded in 1994, ABSLAMC is a joint venture between Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. The new fund has been established with the objective of accessing opportunities within India’s developing defense sector. This sector is currently undergoing rapid modernization and a significant influx of investments. The defense budget of the Indian government is estimated to be Rs 6.22 lakh crore. It is projected that there will be a 15% compound annual growth rate (CAGR) in capital expenditure from the financial year 2024 to the financial year 2030. These developments indicate a strategic emphasis on self-reliance and the enhancement of advanced military capabilities within the country.
Investors in the Aditya Birla Sun Life Nifty India Defence Index Fund will benefit from a wide range of companies operating in the defence sector. These companies are engaged in various activities such as manufacturing, aerospace, shipbuilding, and defence electronics. The fund’s investment strategy is in line with the overall efforts to enhance national security and economic strength through targeted investments in the defence industry.
A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said: “There is substantial market growth potential (for defense sector), given the low-cost base, and companies in this sector are expected to gain higher market share as demand surges.”
Mirae Asset Investment Managers (India) Pvt. Ltd. has floated ‘Mirae Asset Nifty500 Multicap 50:25:25 ETF’, which is an open-ended scheme designed to replicate and track the Nifty500 Multicap 50:25:25 Total Return Index. The index provides a balanced exposure with 50% weightage in large-cap stocks, and 25% each in mid-cap and small-cap stocks, reflecting a comprehensive cross-section of the Indian market.
The Exchange-Traded Fund (ETF) is scheduled to be launched on August 12, 2024. The NFO period will run until August 26, 2024, during which interested investors have the opportunity to partake. The minimum investment required to participate in this offering is set at Rs 5,000, with the option for subsequent investments in multiples of Rs 1. The fund will be under the management and oversight of Ekta Gala and Vishal Singh.
The Exchange-Traded Fund (ETF) boasts transparency and affordability, making it an attractive choice for investors looking to diversify and maintain stability in their portfolios. Mirae Asset’s recently launched ETF offers investors the opportunity to access a wide range of market segments through a strategy guided by a disciplined approach, designed to provide reliable, steady long-term returns.
Siddharth Srivastava, Head – ETF Products and Fund Manager at Mirae Asset, emphasized that this ETF represents a strategic addition to their product lineup. The fund aims to offer a balanced investment approach by combining the stability of large-cap stocks with the growth potential of mid and small caps. This method is intended to provide a well-rounded investment experience while maintaining a disciplined approach through quarterly rebalancing.
