Aditya Birla Sun Life Mutual Fund Launches Aditya Birla Sun Life BSE India Infrastructure Index Fund
The NFO will be open for subscription from 14th November 2024 to 28th November 2024 An opportunity to invest in India’s first index fund tracking the BSE India Infrastructure Index
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 BSE India Infrastructure Index Fund, an open-ended index fund tracking the BSE India Infrastructure Total Return Index. The New Fund Offer (NFO) will remain open from 14th November 2024 to 24th November 2024.
Investing in the infrastructure sector offers compelling growth potential, with a projected 15% CAGR in budgetary capital expenditure and a significant GDP multiplier effect of 2.5x to 3.5x, as per a recent Morgan Stanley report. This sector encompasses a wide array of companies that are increasingly prioritized by government initiatives, reflecting positive coverage from analysts, a robust order pipeline and promising profitability forecasts. Key reforms such as the Production- Linked Incentive scheme, the Goods and Services Tax and advancements in the power sector further support this growth. Additionally, foreign direct investment has surged over the last five years, with strong investor confidence underscoring the sector’s potential.
Commenting on the new fund launch, A. Balasubramanian, Managing Director & CEO, Aditya Birla Sun Life AMC Ltd, said, “India’s infrastructure sector presents a transformative opportunity for investors to align with India’s growth story. With the Government’s strong focus and commitment to infrastructure, coupled with favorable demographics and rising domestic consumption, the sector is poised to be a critical driver of India’s economic growth. As we advance towards the Amrit Kaal 2047 vision, sectors like Energy, Construction & Engineering, Transportation and Utilities will play pivotal roles in shaping India’s journey to becoming a developed economy. Also, the BSE India Infrastructure Index has a wider representation of stocks/sub-sectors within the infra space.”
The first index fund tracking the BSE India Infrastructure Index offers a unique approach by combining momentum strategies with controlled weight allocation. By diversifying across five key infrastructure clusters, it provides balanced exposure to the sector’s growth potential while managing risk. This makes it an attractive option for investors seeking structured diversification in India’s infrastructure market.
