Aditya Birla Sun Life Mutual Fund launches Aditya Birla Sun Life Nifty IT ETF
Mumbai: Aditya Birla Sun Life AMC Limited, a subsidiary of Aditya Birla Capital Limited, and investment manager to Aditya Birla Sun Life Mutual Fund (ABSLMF) has announced the launch of Aditya Birla Sun Life Nifty IT ETF, an open-ended exchange traded fund that will track the Nifty IT TRI (Total Return Index).
The New Fund Offer (NFO) opens for subscription on October 20, 2021 and closes on Oct 28, 2021.
The Nifty IT index is computed using free-float market capitalization method with a base date of Jan 1, 1996. This index acts as a benchmark for the performance of the Indian IT sector and comprises 10 marquee IT companies listed on the National Stock Exchange (NSE).
It is predominantly a large-cap index and is rebalanced on a quarterly basis by ensuring that no single stock is more than 33% and weightage of top 3 stocks cumulatively are not to be more than 62% at the time of rebalancing. Nifty IT has outperformed broad based indices across time periods.
Commenting on the launch, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Limited said, “Over the years, India has established itself as a preferred destination for IT & Business Process Management services, with the sector contributing almost 44% of FDI inflows in India in 2021 (Source: Gartner, Indian Brand Equity Foundation (IBEF) / As on August 2021). It is estimated that the Indian IT sector has the potential of becoming a $350 billion industry in annual revenues by 2025 as per a report by Nasscom. The Government is also incentivising the sector by not only fast-tracking Digital India initiative but also introducing schemes like MeitY, SAMRIDH and PLI. All this will significantly benefit the sector.”