Aditya Birla Sun Life Conglomerate Fund NFO: Should You Invest?

The Aditya Birla Sun Life Conglomerate Fund NFO opened for subscription on December 5, 2024, and will be available to the public until December 19, 2024. This scheme will focus exclusively on India's top promoter-led conglomerates. Conglomerates are promoter-led groups domiciled in India with at least two listed companies operating across different industries. A few examples of conglomerates are Tata Group, Reliance , Adani, Bajaj and the Aditya Birla Group. Here's a detailed look at what the fund offers and whether it aligns with your investment goals. Aditya Birla Sun Life Conglomerate Fund NFO snapshot Feature Details Fund name Aditya Birla Sun Life Conglomerate Fund Fund type Actively-managed thematic equity scheme Benchmark BSE Select Business Groups Index Exit load 0.50 per cent of NAV if redeemed within 90 days; Nil after 90 days Fund managers Harish Krishnan and Kunal Sangoi Taxation If sold after a year, gains beyond Rs 1.25 lakh are taxed as 12.5 per cent. If sold within a year, gains are taxed at 20 per cent. Aditya Birla Sun Life Conglomerate Fund NFO: Investment strategy Aditya Birla Sun Life Conglomerate Fund's investments can span across 22 sectors. It can choose stocks across 36 large caps, 30 mid caps and 103 small-cap companies, as per the scheme document. However, it won't invest more than 25 per cent of investors' money in any one conglomerate. This way, the fund will ensure exposure to at least four conglomerates to reduce risk. Performance outlook The Aditya Birla Sun Life Conglomerate Fund is an actively managed thematic fund with no direct rivals. It's a first of its kind. The fund's returns will depend on the fund managers' ability to execute the strategy. While it is impossible to predict the fund's performance, we can take cues from its benchmark, the BSE Select Business Groups Index. The benchmark has delivered an annualised return of 27.7