An open-ended fund of funds investing in units of overseas ETF and index fund-based on Nasdaq-100 index
| Good to know Fund of funds A fund of funds is a mutual fund scheme that invests in other mutual funds, exchange-traded funds and even hedge funds. It pools investors’ money and puts it in other schemes rather than directly investing in stocks or any other asset class. |
Investment objective
The scheme aims to provide long-term capital appreciation by investing in units of overseas exchange-traded funds (ETFs) and index fund-based on the Nasdaq 100 index. Through these investments, the fund will aim to provide returns that correspond generally with the performance of the Nasdaq 100 index, subject to tracking error.
The Nasdaq 100 index consist of 100 largest non-finance companies. This index includes companies from across sectors such as gaming, technology and clean energy. Global heavyweights like Facebook, Alphabet, Apple and Tesla are a part of the index. These companies are global leaders, disruptors and innovators. In fact, 58 companies in this index filed patents across at least one disruptive technology area in 2020.
With a market capitalisation of $17 trillion, Nasdaq 100 index has a proven track record of growth and performance.
So, this fund provides an opportunity to investors to benefit from the global growth and at the same time diversify their investments geographically. Also, the fund acts as a hedge against rupee depreciation.
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Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Units of overseas ETFs and/or index fund-based on Nasdaq 100 index | 95 | 100 | High |
| Debt schemes, debt & money market instruments, including tri party repo, g-secs, cash and cash at call | 0 | 5 | Low to medium |
Scheme details
| Name | Aditya Birla Sun Life Nasdaq 100 Index |
| Type | An open ended fund of funds investing in units of overseas ETFs and/or index fund-based on Nasdaq-100 index. |
| Category | Equity |
| Benchmark | Nasdaq 100 Index |
| Entry/exit load | Entry: Nil Exit Load: Nil |
| Fund Manager | Vinod Bhat |
| Minimum application amount | ₹5,000 and in multiples of ₹1,000 thereafter. |
| Expense ratio | Up to 1% |
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| This product is suitable for investors who are seeking*: | Riskometer |
| -Long term capital appreciation -Return that corresponds generally to the performance of the Nasdaq-100 Index, subject to tracking error |
*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by Aditya Birla Sun Life Asset Management Company. To read the entire document, click here.
Disclaimer: The above article is purely academic in nature and aims to provide knowledge about basic trading concepts & should not be construed as an opinion or advice to invest or trade. RKSV Securities India Private Limited (brand name Upstox) is the distributor of the mutual fund. Mutual fund investments are subject to market risks; please read all the related documents and/or consult your investment advisor before investing. Past performance of an investment asset does not guarantee future returns.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.