In Financial year 2025, equity mutual funds have gained remarkable attention, drawing ₹2.04 lakh crore in inflows by September 2024. Among these, index funds focused on high-growth sectors like infrastructure are becoming popular as investors seek stable, long-term growth opportunities.
To cater to this demand, Aditya Birla Sun Life Mutual Fund has introduced the Aditya Birla Sun Life BSE India Infrastructure Index Fund NFO, a fund that mirrors the performance of key infrastructure companies in India.
This fund is designed for investors who want exposure to India’s growing infrastructure sector, offering a low-cost, diversified option aligned with the nation’s rapid development.
Details of Aditya Birla Sun Life BSE India Infrastructure Index Fund
This is an open-ended Index Fund that aims to replicate the BSE India Infrastructure Total Return Index. It invests across five key clusters within the infrastructure sector: Energy, NBFCs, Construction & Engineering, Transportation, and Utilities, thereby offering broad exposure to this vital sector.
Investment Objective of the Fund
Aditya Birla Sun Life BSE India Infrastructure Index Fund NFO’s primary objective is to deliver returns that mirror the performance of the BSE India Infrastructure Total Return Index, while factoring in tracking errors. However, like all index funds, there’s no guaranteed return, as the fund’s performance will depend on the index’s returns.
Here are the key features of Aditya Birla Sun Life BSE India Infrastructure Index Fund:
| Attributes | Details |
| Fund House/Asset Management Company | Aditya Birla Capital Mutual Fund |
| Risk Profile | Very High |
| Fund Managers | Mr. Rupesh Gurav |
| Category | Equity Fund |
| NFO Opens | November 14, 2024 |
| NFO Closes | November 28, 2024 |
| Benchmark Index | BSE India Infrastructure Total Return Index |
| Exit Load | Redemption/switch-out within 30 days: 0.05% NAV After 30 days: No charge |
| Minimum SIP | ₹500 |
| Minimum Lumpsum | ₹500 |
Portfolio Allocation
Aditya Birla Sun Life BSE India Infrastructure Index Fund NFO will maintain an asset allocation as follows:
| Asset Type | Allocation Percentage |
| Equity & Equity-related Securities (BSE India Infrastructure Index) | 95-100% |
| Debt & Money Market Instruments (for Liquidity) | 0-5% |
The portfolio structure emphasizes infrastructure companies with at least a 6-month listing history and categorized within the BSE All Cap index. This index fund is constructed to provide investors exposure to companies propelling India’s infrastructure development.
Understanding Risks and Returns
Given the infrastructure theme’s growth potential, this fund targets long-term capital appreciation, suitable for investors with a high-risk tolerance. The focus on infrastructure stocks may lead to greater volatility, as sector performance can be impacted by regulatory and economic shifts.
However, the broad sectoral exposure and index-based approach help mitigate individual stock risks while capturing the sector’s overall growth.
Asset Management Company
Aditya Birla Sun Life Mutual Fund (ABSLMF) is a collaboration between Aditya Birla Capital Limited of India and Sun Life AMC Investments, Inc. of Canada. Established in 1994, the company was initially known as Birla Sun Life Asset Management Company Limited. With over 25 years in the Indian financial sector, ABSLMF has established a significant presence.
As of 30th June 2024, ABSL Mutual Funds oversees assets valued at around ₹360,520.88 crore, positioning it as one of India’s largest asset management firms.
The top funds served by the AMC includes Aditya Birla Sun Life PSU Equity Fund and Aditya Birla Sun Life Dividend Yield Fund, which has delivered results of 32.19% and 21.12% in the last 3 years respectively.
Meet the Fund Manager
Aditya Birla Sun Life BSE India Infrastructure Index Fund NFO is managed by Mr. Rupesh Gurav.
Mr. Rupesh Gurav, aged 41, holds a Bachelor of Commerce degree from Mumbai University and has approximately 18 years of experience in the mutual fund industry. Since 2014, he has been with Aditya Birla Sun Life AMC Limited (ABSLAMC), where he contributes to the Operations team, focusing on Trades and Settlements. Prior to joining ABSLAMC, he worked with Citi Bank N.A. and Sahara Asset Management Company Private Limited, gaining valuable industry experience.
Who Should Invest in This NFO?
The Aditya Birla Sun Life BSE India Infrastructure Index Fund is ideal for:
- Investors aiming for capital growth through exposure to infrastructure.
- Individuals seeking a cost-effective, diversified entry into an essential sector of India’s economy.
- Those with a high-risk appetite who understand the nature of thematic investments in infrastructure.
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