With ETFs gaining popularity among fund houses, Birla Sun Life has become the latest AMC to launch an equity ETF.
In September 2002, Birla Sun Life had launched its 1st index fund that invests in S&P CNX Nifty index stocks. The AMC has now announced its 2nd ETF – Birla Sun Life Nifty ETF. This new offering comes at a time when new as well as existing investors are finding Exchange Traded Funds very interesting. Birla Sun Life’s 1st ETF was a gold ETF launched in May 2011. This one is an open-ended index fund focused on the Nifty stocks. It will be the 31st ETF of the industry and the 7th focused on S&P CNX Nifty.
Investment objective and strategy
The objective of the scheme is to generate returns which closely correspond to the returns generated by securities as represented by S&P CNX Nifty index, subject to tracking error, if any. This passively managed scheme will invest in securities covered by S&P CNX Nifty. The fund may also invest in debt and money market instruments, limited to an exposure of a maximum 5 per cent.
Mr. Satyabrata Mohanty will be the fund manager for the scheme. He has over 12 years of experience in Finance and Research and has done B.Com, C.A. and CFA from the CFA Institute. Currently, he also manages 11 other schemes of Birla Sun Life Mutual Fund, either wholly or jointly with other fund managers.
Birla Sun Life Mutual Fund has been around for more than 16 years and has launched numerous schemes in almost every mutual fund category. The AMC’s equity assets and asset under management as on March 31, 2011 stood at around Rs 10851.27 crore, which puts it at the 8th position, and Rs 63733.28 crore, which puts it at the 5th position, respectively.
NFO Opens: July 4, 2011
NFO Closes: July 18, 2011
NFO Price: Rs.10/-
Listing: National Stock Exchange
Minimum Application Amount: Rs. 5000 and in multiples of Rs. 1000 thereafter per application
Exit Load: NIL
Benchmark: S&P CNX Nifty
Fund Manager: Mr. Satyabrata Mohanty