Aditya Birla Sun Life Mutual Fund (ABSLMF) has launched Aditya Birla Sun Life Nifty Healthcare ETF. It is an open-ended exchange-traded fund (ETF) that will track the Nifty Healthcare TRI. The New Fund Offer (NFO) opens for subscription on October 8 and closes on October 20.
According to the press release, the Nifty Healthcare Index comprises a maximum of 20 tradable, exchange-listed companies and has a well-diversified sub-sector allocation.
Apart from health care companies, the index includes companies from fields such as pharma, hospitals, medical devices and supplies, laboratories and diagnostics as well as medical insurance. The sub-sectors also include companies engaged in formulations, APIs, CRAMs and other healthcare services.
The index is constituted on a free-float market capitalization method and is reconstituted semi-annually. This index has significantly outperformed the broader market indices in recent years.
“Healthcare has become one of India’s core sectors, in terms of revenue, exports and employment generation. This growth is reflected in the market performance of healthcare companies. The Nifty Healthcare Index has grown more than 9x from its base date vis-à-vis Nifty, which has grown 8x in the same period. It has generated double-digit returns in both short-term (3 years) and long-term (10 years),” A. Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC.
He adds, “As it is a passive fund, it minimizes the investing cost and need for stock selection, at the same time offering the benefit of share-like trading. The Healthcare ETF will be an easy way for investors to be a part of this sector’s growth journey.”
The fund house believes that the healthcare sector is well-poised for a strong growth trajectory. The minimum application amount for this fund is Rs 500 and in multiples of Rs 100 thereafter, during the NFO that is open from October 8, 2021, to October 20, 2021.