Aditya Birla Sun Life Mutual Fund has launched Nifty PSE ETF fund, offering investors an opportunity to participate in the growth journey of India’s public sector enterprises (PSEs).

The new fund offer (NFO) of Aditya Birla Sun Life Nifty PSE ETF – an open-ended exchange traded fund tracking the Nifty PSE Index – will remain available for subscription from May 2 to May 16, 2024.

“The ETF offers investors an opportunity to invest in India’s Public Sector Enterprises (PSEs) that will be responsible for propelling the growth of India going forward,” Aditya Birla Sun Life AMC Ltd said in a release.

Aditya Birla Sun Life AMC Ltd is the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. Incorporated in 1994, Aditya Birla Capital Ltd and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of Aditya Birla Sun Life AMC Ltd.

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Aditya Birla Sun Life Nifty PSE ETF benefits

“The scheme offers a combination of benefits where investors can gain exposure to leading public sector companies with strong market positions, potentially benefiting from both high dividend yields and long-term growth. Additionally, government backing often translates to lower volatility compared to individual stocks,” the AMC said, adding that this ETF aligns investment with national priorities like Make in India and Atmanirbhar Bharat, allowing the investor to participate in India’s economic journey.

Aditya Birla Sun Life Nifty PSE ETF focus sectors

“With a focus on sectors like power, oil and gas, capital goods, metals, financial services, etc, this investment opportunity caters to a wide spectrum of investors. Long-term holders seeking growth, income-focused individuals, and those desiring portfolio diversification through the PSE sector can find value in this ETF,” the company said.

Commenting on the new fund launch, A Balasubramanian, MD & CEO, Aditya Birla Sun Life AMC Ltd, said, “Public sector enterprises have been the cornerstone of the Indian economy, and with the Aditya Birla Sun Life Nifty PSE ETF, we are empowering investors to participate in their continued growth.”

These enterprises are set to play a pivotal role in propelling the nation towards a USD 7 trillion economy and a developed India by 2047, he said. “The ETF offers a convenient and efficient way to benefit from their collective strength and stability. By tracking the Nifty PSE Index and minimizing tracking errors, investors gain exposure to these vital companies.”