NFO review: Aditya Birla Sun Life Nifty Healthcare ETF

On October 08, 2021, Aditya Birla Sun Life (ABSL) Mutual Fund rolled out a new fund offer (NFO) that will provide exposure to the healthcare theme in an ETF (exchange-traded fund) format. An ETF structure tracks the performance of an index by closely replicating the portfolio of the underlying index. The newbie, ABSL Nifty Healthcare ETF, will track the NIFTY Healthcare Index. Here the investor will get exposure to a maximum of 20 tradable, NSE listed companies engaged in the healthcare field, such as pharma, hospitals, medical devices and supplies, laboratories and diagnostics, medical insurance, etc. The scheme will close for subscription on October 20, 2021, and will be managed by Lovelish Solanki. About the strategy We compared the NIFTY Healthcare Total Return Index with that of the NIFTY 50 Total Return Index to see how this strategy has worked vis-à-vis the broader market (see the chart 'The Nifty Healthcare Index vis-à-vis the Nifty 50'). Over the last decade, while the healthcare index initially outperformed the broader market with a higher degree of outperformance, the growth momentum fizzled out from 2016 to 2019. A similar