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Aditya Birla Sun Life MF launches two new index funds: Who should invest?
Aditya Birla Sun Life MF launches two new index funds: Who should invest?

Business Standard

time7 days ago

  • Business
  • Business Standard

Aditya Birla Sun Life MF launches two new index funds: Who should invest?

Aditya Birla Sun Life Mutual Fund has launched two new factor-based index funds - Aditya Birla Sun Life BSE 500 Momentum 50 Index Fund and Aditya Birla Sun Life BSE 500 Quality 50 Index Fund. The New Fund Offer (NFO) for both funds opened for subscription on Monday, July 21, 2025, and will close on Monday, August 4, 2025. The BSE 500 Momentum Index Fund is an open-ended scheme replicating the BSE 500 Momentum 50 Total Return Index (TRI). The scheme will invest in the top 50 stocks from the BSE 500 with the strongest price momentum. On the other hand, the Quality 50 Index Fund will invest in 50 companies from the BSE 500 with stable earnings, high return on equity, and low debt. A Balasubramanian, managing director and chief executive officer at Aditya Birla Sun Life AMC, said that these twin fund launches are aimed at enabling investors to diversify their core equity portfolios with factor-based strategies that have proven performance across market cycles. "While the Momentum Index offers exposure to higher-return opportunities in fast-growing segments of the market, the Quality Index focuses on stocks with resilient earnings and a layer of stability against drawdowns. With India poised for sustained economic growth, both strategies offer a timely and complementary approach to long-term investing. Investors may choose either fund or a combination of both funds based on their investment horizon, risk tolerance, and return expectations,' he added. Priya Sridhar will be the designated fund manager for both schemes. According to the scheme information document (SID), the minimum amount required for investment in both the schemes is ₹500 and in multiples of ₹100 thereafter during the NFO period. For monthly and weekly SIP, the minimum amount is ₹500 and in multiples of ₹1 thereafter in both the funds. For both schemes, an exit load of 0.10 per cent of the applicable NAV will be levied on redemptions or switches made within 15 days from the date of allotment. However, no exit load shall be charged on or after the 16th day from the date of allotment. Who should invest in these funds? According to the AMC, the BSE 500 Momentum 50 Index Fund is designed for investors with a higher risk appetite looking to maximise upside capture in trending markets. It benefits from exposure to top-performing stocks and sectors, and stocks with a proven return record over a 12-month horizon. On the other hand, the BSE 500 Quality 50 Index Fund is suitable for investors seeking long-term wealth creation through investments in high-quality names with a stable balance sheet and lower volatility in earnings. These stocks tend to perform better during market downturns and provide good upside in recovery phases, the company said. According to the risk-o-meter, the funds invested in both schemes will be at very high risk. As per the SID, investors should consult their financial advisors if in doubt whether the product is suitable for them.

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