20 October , 2021 Fdiindia
Aditya Birla Sun Life MF Launches Nifty IT ETF
The Aditya Birla Sun Life AMC has launched the Aditya Birla Sun Life Nifty IT ETF, an open-ended exchange-traded fund that will follow the Nifty IT TRI Index (Total Return Index). The subscription period for the New Fund Offer (NFO) began on October 20, 2021, and will end on October 28, 2021.
With a base date of January 1, 1996, the Nifty IT index is calculated using the free-float market capitalization technique. This index, which includes 10 well-known IT firms listed on the National Stock Exchange, serves as a benchmark for the Indian IT sector's success (NSE).
During the NFO, the minimum application amount for this fund is Rs 500, with subsequent amounts in multiples of Rs 100.
It is primarily a large-cap index that is rebalanced every quarter to ensure that no one company has a weightage of more than 33% and that the weightage of the top three companies combined does not exceed 62 percent at the time of rebalancing. Nifty IT has consistently outperformed broad-based indexes throughout time.
"Over the years, India has established itself as a preferred destination for IT and Business Process Management services, with the sector contributing nearly 44% of FDI inflows in 2021 (Source: Gartner, Indian Brand Equity Foundation (IBEF) / As on August 2021)," says A. Balasubramanian, Managing Director and CEO, Aditya Birla Sun Life AMC Limited.
"According to a Nasscom study, the Indian IT sector has the potential to become a $350 billion business in yearly sales by 2025," he continues. In addition to speeding up the Digital India project, the government is incentivizing the industry by establishing schemes such as MeitY, SAMRIDH, and PLI. All of this will be very beneficial to the industry."
It's worth noting that by 2025, India is expected to have 900 million active Internet users. Growth is being seen across the board, from e-commerce and finance to cloud computing and social media. Furthermore, analysts predict that the adoption of new-age technology would increase India's yearly growth rate by 1.3 percent by 2035. IT businesses are well-positioned to maintain their excellent growth trajectory, especially as the pace of digital change accelerates.
"Amid the pandemic, the industry showed its defensive character by posting robust company growth and also giving outstanding returns," Balasubramanian continues. India is on pace to become a global IT hub, according to Aditya Birla. The Sun Life IT ETF gives investors access to the leading IT businesses' development prospects."