Aditya Birla Sun Life Mutual Fund launches Nifty India Defence Index Fund
Aditya Birla Sun Life Mutual Fund has announced the launch of Aditya Birla SL Nifty India Defence Index Fund, an open-ended index fund that replicates the Nifty India Defence Total Return Index.
The new fund offer or NFO of the scheme will open for subscription on August 9 and will close on August 23.
The investment objective of the scheme is to provide returns that, before expenses, match the total returns of the securities represented by the Nifty India Defence Total Return Index, subject to tracking errors.
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The scheme will be benchmarked against Nifty India Defence Total Return Index. It will be managed by Haresh Mehta and Pranav Gupta. The scheme will offer regular and direct plans both with growth and IDCW options.
The scheme will allocate 95-100% in equity and equity-related securities constituting the Nifty India Defence Index, and 0-5% in debt and money market instruments (including Cash and Cash Equivalent).
The scheme will follow a passive investment strategy and will invest not less than 95% of its corpus in stocks comprising the underlying index and endeavour to track the benchmark index while minimizing the tracking error.
The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, taking into account the change in weights of stocks in the index as well as the incremental collections/redemptions in the scheme
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