NFO Update: Aditya Birla Sun Life Launches BSE India Infrastructure Index Fund

Aditya Birla Sun Life Mutual Fund has introduced the Aditya Birla Sun Life BSE India Infrastructure Index Fund, marking the debut of an index fund that tracks the BSE India Infrastructure Total Return Index in India.

NFO Details

The NFO is presently open for subscriptions from November 14, 2024 and ending November 28, 2024. It tracks the BSE India Infrastructure Total Return Index as its benchmark. A minimum lump sum investment of Rs 500 is required to participate, and after that, multiples of Rs 100 are accepted. For SIPs, the minimum investment is Rs 500, followed by multiples of Re 1. Within 30 days of allotment, units that are redeemed or switched out will have an exit load of 0.05 per cent of the applicable NAV while after 30 days, there will be no exit load.

According to Aditya Birla Sunlife Mutual Funds, the fund seeks long-term capital growth by investing in the BSE India Infrastructure Total Return Index. The infrastructure sector is expected to experience robust growth, with capital expenditure projected to grow at 15 per cent annually and a GDP multiplier effect ranging from 2.5x to 3.5x, as reported by Morgan Stanley. The fund provides diversified exposure across several important infrastructure sectors. It is a desirable choice for investors looking for structured diversification in India's infrastructure industry because it blends momentum methods with controlled weight allocation.

A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, commented, "India's infrastructure sector presents a key opportunity for investors, driven by government focus and rising domestic consumption. As we progress towards the Amrit Kaal 2047 vision, sectors like Energy, Construction, and Utilities will be essential in shaping India’s growth. The BSE India Infrastructure Index offers a broad representation of infrastructure stocks and sub-sectors."

Who Should Invest?

Aditya Birla Sunlife Mutual Funds suggests that this fund is suitable for investors seeking long-term capital growth by benefiting from the anticipated expansion of India’s infrastructure sector. It is ideal for those looking for sector-specific exposure to government-backed growth initiatives and structured diversification across multiple infrastructure clusters while managing risk. However, potential investors must assess their risk appetite, given the very high risk associated with the scheme.