NFO review: Aditya Birla Sun Life Nifty IT ETF

Aditya Birla Sun Life Mutual Fund has rolled out a new fund offer (NFO) that will provide exposure to the information technology (IT) sector in an ETF (exchange-traded fund) format. It will close for subscription on October 28, after which it can be purchased and sold on the stock exchanges. The fund aims to provide returns that closely correspond to the total return of the Nifty India IT Index, subject to tracking errors. The scheme will be managed by Lovelish Solanki and Kedarnath Mirajkar. The AMC believes that India is booming as an internet economy, and the Government too is focused on IT growth. This has resulted in various services like delivery and location services, social media, and e-commerce becoming part of the digital growth story. Further, the burgeoning IT sector, supported by a conducive growth environment, is poised to achieve new highs and milestones. About the strategy The NIFTY IT Index enlists the top 10 IT companies based on the market cap from expanding IT sub-sectors such as IT services, cloud computing, enterprise software, BPM, IT hardware, etc. To see how the index has done on the performance front relative to the broader market, we compared the NIFTY IT TRI with that of the NIFTY 50 TRI (see the chart 'The Nifty IT Index vis-à-vis the Nifty 50'). A look at the calendar year returns over the last decade shows that the technology in