The information and data contained in this Website do not constitute distribution, an offer to buy or sell or solicitation of an offer to buy or sell any Schemes/Units of Aditya Birla Sun Life Mutual Fund (ABSLMF), securities or financial instruments in any jurisdiction in which such distribution, sale or offer is not authorised. In particular, the information herein is not for distribution and does not constitute an offer to buy or sell or the solicitation of any offer to buy or sell any securities or financial instruments in the United States of America ("US") and Canada to or for the benefit of United States persons (being persons resident in the US, corporations, partnerships or other entities created or organised in or under the laws of the US or any person falling within the definition of the term "US Person" under the US Securities Act of 1933, as amended) and persons of Canada.
By entering this Website or accessing any data contained in this Website, I/We hereby confirm that I/We am/are not a U.S. person, within the definition of the term 'US Person' under the US Securities laws/resident of Canada. I/We hereby confirm that I/We are not giving a false confirmation and/or disguising my/our country of residence. I/We confirm that Aditya Birla Sun Life Mutual Fund / Aditya Birla Sun Life AMC Limited (ABSLAMC) is relying upon this confirmation and in no event shall the directors, officers, employees, trustees, agents of ABSLAMC associate/group companies be liable for any direct, indirect, incidental or consequential damages arising out of false confirmation provided.
• Investors who have a long-term investing horizon (5 years or more)
• Investors looking for long-term capital growth through equity investments in large cap space.
• Investors looking to reduce risk of active stock selection through investment in a passive investment strategy.
• Investors looking for a plus product over a conventional index fund – ‘Simple, smart and intelligent’ index investing.
Index investing seeks to mimic the performance of an index. Its passive investing strategy provides for automatic stock selection reducing risk of ‘active’ stock selection while keeping costs low. One of the options in passive investing is Nifty 50 Equal Weight Index.
Nifty 50 Equal Weight Index comprises of the same top 50 large cap companies that constitute the popular Nifty 50 Index, but weighted equally, as against market cap based weightage. In other words, it follows an alternative weighting strategy - all 50 companies are weighted equally i.e., ~2% allocation to each company.
The index’s portfolio is rebalanced quarterly i.e., allocation to all 50 stocks is balanced back to ~2% every quarter. This results in a periodic automatic profit booking since overweight stocks are sold, and underweight stocks are bought.
As the economy moves into a phase of broad-based economic growth, such a strategy which provides equal opportunity to all portfolio stocks to shine as against one which relies on the performance of a few ‘top stars’ can be considered.
Aditya Birla Sun Life Nifty 50 Equal Weight Index Fund is an open ended scheme tracking Nifty 50 Equal Weight TR Index. The investment objective of the Scheme is to provide returns that closely correspond to the total returns of securities as represented by Nifty 50 Equal Weight TR Index, subject to tracking errors.
The Scheme does not guarantee/indicate any returns. There can be no assurance that the schemes’ objectives will be achieved.
The scheme allocates 95-100% to Equity & Equity related securities constituting the Nifty 50 Equal Weight Index and 0-5% in Debt and Money Market Instruments. The net assets of the scheme will be invested predominantly in stocks constituting the Nifty 50 Equal Weight TR Index.
• Potential access to leaders of the market: Access to growth potential of the top 50 large cap companies even with low minimum investments. Automatic index reconstitution ensures you stay invested in the ‘top movers’ of the economy..
• Reduced stock and sector concentration risk: Equal weighted investment strategy aims to provide more diversification across stocks and sectors.
• Conducive to a broad-based market rally: Gives equal opportunity to all portfolio constituents with potential to shine, conducive when growth is seen in companies across the board.
• Provides access to a ‘simple yet smart and intelligent’ investing strategy: Simple and hassle-free index investing coupled with automatic reconstitution and rebalancing helps for ‘smart’ periodic booking of profits.
• Lower costs:Passive investing leads to lower turnover and lower expense ratio for investors.
Invests in top 50 large cap companies with an aim to provide an opportunity for long term capital growth.
More balanced stock and sectoral allocation with an aim to reduce concentration risk.
Unbiased equal allocation to all 50 stocks gives equal opportunity to all stocks to contribute to the fund’s growth
The underlying index is reconstituted and rebalanced quarterly which helps in periodic automatic booking of profits.
For more information on the scheme, please refer to SID/KIM of the scheme.
The pandemic has resulted in high uncertainty in the business environment.
With the changing behaviour and as we adjust to the ‘new normal’, several new trends and companies have emerged in different sectors.
The companies whose ratings have suffered due to current lack of demand can expect a boost in their valuations once things return back to normal.