ABSL Mutual fund has launched two new index funds. These funds seek to replicate the performance of the underlying indices and will allow the investors to participate in broader market opportunities. Midcap and Smallcap Indices encompass a larger number of sectors as compared to their large cap counterparts. Further, index funds use the passive management strategy and are cost-effective than actively managed funds.
In the opinion of A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC, the macroeconomic factors appear to be in place, and policies like Make in India, Aatmanirbhar Bharat and PLI Scheme will strengthen the domestic oriented Midcap and Smallcap companies.
Here are some of the key features of the funds launched.
ABSL Nifty Midcap 150 Index Fund
- An open-ended scheme tracking the NIFTY Midcap 150 Index
- The underlying index represents around 15.2% of the total market capitalization of NSE as on 15 Jan 21
- Offers diversification by investing across 18 sectors
ABSL Nifty Smallcap 50 Index Fund
- An open-ended scheme tracking the NIFTY Small cap 50 Index
- The underlying index represents around 2% of the total market capitalization of NSE as on 29 Mar 19
- Offers diversification by investing across 15 sectors
The funds strive towards covering sunrise sectors that are likely to benefit from government policies like Make in India. These funds work on the collective wisdom of the market and are advisable for investors having a long term horizon of more than five years.
The new fund offer period for both the funds is open till 26 Mar 21.
