Aditya Birla Sun Life Nifty India Defence Index Fund- NFO: NAV

Aditya Birla Sun Life Nifty India Defence Index Fund: Complete Overview

Aditya Birla Sun Life Mutual Fund launches “Aditya Birla Sun Life Nifty India Defence Index Fund” (India’s second Defence Index Fund). It is an open-ended equity scheme that replicates the Nifty Indian Defence TRI. The New Fund Offer (NFO) date is from August 09 to August 23, 2024, with an NFO price of Rs.500 and in multiples of Rs.1 having an Exit Load of 0.05% if units are redeemed within 30 days.

After Motilal Oswal Nifty India Defence Index Fund launched two months ago, now Aditya Birla Sun Life Nifty India Defence Index Fund NFO is going in the same theme.

To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

Aditya Birla Sun Life Nifty India Defence Index Fund NFO Details

The scheme is suitable for investors who want to achieve capital appreciation over a long time and invest in equity, subject to tracking error, and equities related to securities covered by the Nifty India Defence Total Return Index. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met.

The scheme will invest 95-100% of its units in Equity underlying the Nifty India Defence Index and 0-5% in debt and money market instruments including Cash & Cash Equivalent.

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Fund Overview

The minimum subscription amount is set at Rs.500 and in multiples of Rs.1 thereof.

How To Invest In The NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then within 5 working days after the end date of the NFO, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Aditya Birla Sun Life Nifty India Defence Index Fund” or directly with the AMC or simply click the ‘Banner’ below

The Objective Of The Fund

The Scheme intends to achieve returns comparable to the Nifty India Defence Total Return Index before expenses, subject to tracking errors. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Peers of Aditya Birla Sun Life Nifty India Defence Index Fund

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

Risk Factors In Such Funds

• The Scheme's NAV will change in response to stock market fluctuations. The Investor could lose capital over a short or long period due to fluctuations in the Scheme's NAV as a result of variables such as company performance.

• Although closely tracking the index is the scheme's goal, performance may not always match the underlying Index's performance on a given day or over a particular length of time.

• At least 95% of the Scheme's net assets shall be allocated to equity and equity-related instruments within the Nifty India Defence Index. Due to its sectoral nature, the Scheme would be impacted by the risks related to the Nifty India Defence Index's components.

• By their very nature, equities and securities associated with them are volatile and subject to daily price variations brought on by a variety of macro and micro causes.

• The investment in the scheme could increase or decrease based on a variety of variables and pressures affecting the debt and capital markets, as well as changes in the interest rate, price, and value of the securities in which the scheme invests.

Past Performance of Index Funds

Aditya Birla Sun Life Nifty India Defence Index Fund NFO-Who Can Invest?

This Fund is ideal for those who want to achieve capital appreciation over a long time and invest in equity, subject to tracking error, and equities related to securities covered by the Nifty India Defence Total Return Index.

Aditya Birla Sun Life Nifty India Defence Index Fund NFO-Growth Fund Managers

• Mr. Haresh Mehta 

• Mr. Pranav Gupta

Conclusion

The new Aditya Birla Sun Life Nifty India Defence Index Fund presents an opportunity for investors to explore the defense sector. It is appropriate for investors aiming for long-term growth to invest in equity and equities related to securities covered by the Nifty India Defence Total Return Index. Always assess your Financial Goals, Risk tolerance, time horizons, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor before investing.