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Aditya Birla Sun Life MF has launched Aditya Birla Sun Life Nifty India Defence Index Fund, an open-ended index fund that provides exposure to companies contributing to the nation's defence capabilities.
The underlying index comprise companies providing services to defence ecosystem like manufacturing, aerospace, shipbuilding and defence electronics.
The NFO opens on August 9 and closes on August 23.
In the press release, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life MF, said, “The government has significantly increased its investment in the defence sector to meet internal needs, reduce import dependence and produce for the rising global demand. The focus is on building resilience and enhancing the counter-capabilities of the country's defence system. The sector features high barriers to entry due to its capital-intensive nature and the continuous evolution of product types. There is substantial market growth potential, given the low-cost base and companies in this sector are expected to gain higher market share as demand surges.”
