NFO Alert: Aditya Birla Sun Life Mutual Fund brings in Nifty PSE ETF. Check details

Aditya Birla Sun Life Mutual Fund on Thursday launched the Nifty PSE Exchange Traded Fund (ETF). The New Fund Offer (NFO) will remain open till May 16, 2024.

The open-ended ETF will track the Nifty Public Sector Enterprise (PSE) Index. The NIFTY PSE is an index that represents Indian public sector enterprises. It contains 20 stocks with major governmental ownership, spanning sectors like Oil and Gas, Power, Capital Goods, Metals and Mining, Financial Services, Service Sector and Consumer Service industries.

All about Nifty PSE ETF

1. The scheme will be managed passively with investments in stocks in proportion to the weightage of these stocks in the Nifty PSE Index.
2. The ETF offers investors an opportunity to invest in India’s Public Sector Enterprises (PSEs), which have been tagged as companies propelling the growth of India going forward.
3. Haresh Mehta will manage the scheme. 
4. The fund house said the units of the scheme shall be compulsorily traded in dematerialised form and hence, there shall be no exit load for the units purchased or sold through stock exchanges.
5. It will invest 95-100% in equity and equity-related instruments constituting the Nifty PSE Index and 0-5% in cash, money market, and debt instruments.
6. The minimum investment amount is Rs 500 and in multiples of Rs 100 thereafter during the new fund offer period.

Investment goal

Investors can gain exposure to leading public sector companies with robust market positions and potentially benefit from both high dividend yields and long-term growth prospects by putting their money into the new fund. Additionally, government support typically results in lower volatility compared to investing in individual stocks, adding a layer of stability to the investment.

Besides, long-term investors seeking growth opportunities, income-focused individuals eyeing dividends, and those aiming for portfolio diversification through exposure to the PSE sector can also invest in this ETF, the fund house said. 

"By tracking the Nifty PSE Index and minimising tracking errors, investors can gain exposure to vital companies poised to drive India towards becoming a $7 trillion economy by 2047," A Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC said.