An open-ended exchange-traded fund (ETF), which tracks the Nifty IT Index.
| Good to know Exchange-traded fund (ETF) An ETF is a mutual fund that tracks the performance of sectors, commodities or stock market indices. Unlike other equity schemes, it can be traded on the exchanges just like a stock. ETFs can contain many types of investments, including stocks, commodities and bonds. |
Investment objective
Over the years, India has established itself as a preferred destination for IT and business process management services. From e-commerce and fintech to cloud computing and social media, the IT sector has witnessed growth across segments.
As this growth is expected to continue, Aditya Birla Sun Life IT ETF allows investors to benefit from the potential of the top IT companies. This ETF aims to track the Nifty IT Index, which comprises some of the heavyweight Indian IT companies like Infosys, TCS and HCL Technologies.
It is predominantly a large-cap index and is rebalanced every quarter, ensuring that no single stock has more than 33% weightage.
Also, the IT Index has outperformed the Nifty50 and Nifty500 indices across time periods with a significant margin. As the pace of the digitalisation increases post the pandemic, the industry is expected to continue its growth trajectory.
Besides providing exposure to the high growth sector, Aditya Birla Sun Life IT ETF also provides other benefits to investors such as being highly liquid and low cost. This ETF is suitable for investors with a long-term horizon.
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Asset allocation
| Instrument | Allocation (% of total assets) | Risk profile | |
| Minimum | Maximum | ||
| Equity and equity-related related instruments constituting Nifty IT TRI | 95 | 100 | Medium to high |
| Debt and money market instruments | 0 | 5 | Low |
Scheme details
| Name | Aditya Birla Sun Life Nifty IT ETF |
| Type | An open-ended exchange traded fund (ETF) which tracks the Nifty IT TRI (total return index). |
| Category | Equity |
| Benchmark | Nifty IT Index |
| Entry/exit load | Entry: Nil Exit Load: Nil |
| Fund Manager | Mr. Lovelish Solanki & Mr. Kedarnath Mirajkar |
| Minimum application amount | ₹500 and in multiples of ₹100 thereafter. |
| Expense ratio | Up to 1% |
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| This product is suitable for investors who are seeking*: | Riskometer |
| -Long term capital growth -Investments in stocks comprising the underlying index and endeavors to track the benchmark index |
*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.