5 Minutes Read
Aditya Birla Sun Life Mutual Fund launches Nifty PSE ETF: Should you invest?
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
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 Mutual Fund on Thursday (May 2) launched Nifty PSE Exchange Traded Fund (ETF). This is an open-ended ETF tracking the Nifty Public Sector Enterprise (PSE) Index.
The New Fund Offer (NFO) will remain open till 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.
The investment proposition
The ETF is positioned to leverage several factors that could potentially fuel its growth trajectory.
These include a favorable demand environment, strong financial backing, strategic market positioning, and attractive valuations.
Aditya Birla Sun Life Mutual Fund emphasised that these elements could make investing in PSEs a decade-long opportunity.
Benefits and considerations
According to the mutual fund house, the ETF offers a blend of benefits.
Investors can gain exposure to leading public sector companies boasting robust market positions, potentially reaping rewards from both high dividend yields and long-term growth prospects.
Moreover, the government’s support typically translates into lower volatility compared to individual stocks, adding a layer of stability to the investment.
One notable aspect of this ETF is its alignment with key national priorities like Make in India and Atmanirbhar Bharat.
Who should consider investing?
According to Aditya Birla Sun Life Mutual Fund, long-term investors seeking growth opportunities, income-focused individuals eyeing dividends, and those aiming for portfolio diversification through exposure to the PSE sector might find value in this ETF.
A Balasubramanian, Managing Director & CEO of Aditya Birla Sun Life AMC, highlighted the role of PSEs in India’s economy and the ETF’s potential to harness their collective strength and stability.
“By tracking the Nifty PSE Index and minimising tracking errors, investors can gain exposure to vital companies poised to drive India towards becoming a $7 trillion economy by 2047,” he said.
However, investors should conduct thorough research, assess their risk tolerance, and consult with financial advisors before making investment decisions.
ALSO READ | Groww MF launches India’s first non-cyclical index fund: Should you invest?
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
