Aditya Birla SL Mutual Fund launches Aditya Birla Sun Life Nifty PSE ETF

May 10, 2024


Aditya Birla SL Mutual Fund has launched Aditya Birla Sun Life Nifty PSE ETF.

It is an open-ended exchange traded fund (ETF) tracking the Nifty PSE Index.

Aditya Birla Sun Life Nifty PSE ETF will be managed passively with investments in stocks in a proportion to the weightage of these stocks in the Nifty PSE Index. It will invest a minimum of 95% of its assets in equity and equity-related instruments constituting Nifty PSE index.

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.

The Public Sector Enterprises (PSE) are recognised as vital contributors for nation building, serving as the backbone to India's vision towards $7 trillion economy and Viksit Bharat by 2047. They have a commanding presence across core sectors such as Financial Services, Power, Energy, Engineering, and other services, offering immense diversity. PSEs are predominantly focused on core goods and services, stimulating the economic growth, generating employment, and fulfilling government-led social welfare objectives.

[Read: 4 Equity Mutual Funds Focused on Investing in PSU Stocks]

In terms of risk-o-meter, Aditya Birla Sun Life Nifty PSE ETF being a thematic fund carries higher risks versus diversified equity mutual funds on account of concentration and theme specific risks.

The Nifty PSE Index comprises of 20 stocks that are listed on the National Stock Exchange (NSE) where 51% of company's outstanding share capital is held by the Central Government and/or State Government, directly or indirectly. Nifty PSE Index is computed using free float market capitalization method. It includes companies forming part of the Nifty 500 index.

The following stocks and sectors are currently the top constituents of the Nifty PSE Index.

Data as of April 30, 2024

Aditya Birla Sun Life Nifty PSE ETF will be managed by Mr Haresh Mehta. His qualifications include B.Com and MBA (International Business Management). He has work experience of over 16 years in dealing related activities.

Aditya Birla Sun Life Nifty PSE ETF is open for subscription from May 02, 2024 to May 16, 2024. The fund will reopen for continuous sale and repurchase within 5 days from the date of allotment.

The fund will be listed on the BSE and NSE. The minimum subscription amount is Rs 500 and in multiples of Rs 100 thereafter during NFO period.