The NFO will be open for subscription from 2nd May, 2024 to 16th May, 2024
The NFO provides a decadal opportunity to invest in India’s public sector enterprises
Bengaluru: Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of the Company. ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. The asset manager has announced the launch of Aditya Birla Sun Life Nifty PSE ETF, an open-ended exchange traded fund tracking the Nifty PSE Index. The New Fund Offer (NFO) will remain open from 2nd May 2024 to 16th May 2024.
The ETF offers investors an opportunity to invest in India’s Public Sector Enterprises (PSEs) that will be responsible for propelling the growth of India going forward. A favourable demand environment, financial support, market positioning and better valuation could be some of the tailwinds for this theme to be a decadal opportunity. Revamped and resilient with over a decade of consolidation, PSEs have evolved in corporate governance, business strategies, and work culture. This has led to increase in investor confidence, improved profitability, and significant value unlocking.
The scheme offers a combination of benefits where investors can gain exposure to leading public sector companies with strong market positions, potentially benefiting from both high dividend yields and long-term growth. Additionally, government backing often translates to lower volatility compared to individual stocks. This ETF aligns investment with national priorities like Make in India and Atmanirbhar Bharat, allowing the investor to participate in India’s economic journey. With a focus on sectors like power, oil and gas, capital goods, metals, financial services, etc. this investment opportunity caters to a wide spectrum of investors. Long-term holders seeking growth, income-focused individuals, and those desiring portfolio diversification through the PSE sector can find value in this ETF.
Commenting on the new fund launch, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said, “Public sector enterprises have been the cornerstone of the Indian economy, and with the Aditya Birla Sun Life Nifty PSE ETF, we are empowering investors to participate in their continued growth. These enterprises are set to play a pivotal role in propelling the nation towards a $7 trillion economy and a developed India by 2047. The ETF offers a convenient and efficient way to benefit from their collective strength and stability. By tracking the Nifty PSE Index and minimizing tracking errors, investors gain exposure to these vital companies. The Aditya Birla Sun Life Nifty PSE ETF underscores our unwavering commitment to democratizing access to India’s thriving market potential.”
