July 26, 2022
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NFO of Aditya Birla Sun Life Nifty Financial Services ETF
NFO opens on July 14 ,2022
NFO will close on July 27 ,2022
(Our detailed Guidance is given at the bottom of the Page)
Investment Strategy
The scheme seeks to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Financial Services TRI, subject to tracking errors.
Basic Details
Fund House: Aditya Birla Sun Life Mutual Fund
Issue Open: 14 July 2022
Issue Close: 27 July 2022
Category: Equity: Sectoral-Banking
Type: Open-ended
Min. Investment Rs 500
Plans: Growth
Lock-in Period Not Applicable
Exit Load (%):
Riskometer: Very High
Benchmark: NIFTY Financial Services TRI
Fund Manager
1) Lovelish Solanki
Education: He has done BMS and MMS in finance.
Experience: Prior to joining Aditya Birla Sun Life AMC Limited, he was Equity /Equity Derivatives – Trader at Union KBC Asset Management Co Limited since February 2011. Before that he worked at Edleweiss Asset Management Co. Ltd since January 2008.
2) Pranav Gupta
AMC:
Aditya Birla Sun Life AMC Ltd.
Address: One India Bulls Center – Tower 1, 17th Floor – Jupiter Mills Compound, 841 Senapati Bhawan, Elphinstone Road, Mumbai – 400013
Website: http://mutualfund.adityabirlacapital.com
Registrar & Transfer Agent:
Computer Age Management Services Ltd.
Address: 7th Floor, Tower II, Rayala Towers, 158, Anna Salai, Chennai – 600002
Website: www.camsonline.com
Guidance for NFO of Aditya Birla Sun Life Nifty Financial Services ETF
by Paresh Gordhandas, Research Analyst.
a) What is NIFTY Financial Services TRI?
The Nifty Financial Services Index is designed to reflect the behaviour and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies and other financial services companies. The Nifty Finance Index comprises of 20 stocks that are listed on the National Stock Exchange (NSE).
b) Performance of NIFTY Financial Services TRI
Price Return
Last one Year : 20.88 %
Last 5 Years : 25.04 %
Since Inception : 28.77 %
Fundamentals of this Index
PE : 17.83
P/B : 3.38
Dividend Yield 0.86%
Top constituents by weightage
HDFC Bank Ltd. 23.07
ICICI Bank Ltd. 19.19
Housing Development Finance Corporation 15.35
Kotak Mahindra Bank Ltd. 9.52
State Bank of India 6.98
Axis Bank Ltd. 6.56
Bajaj Finance Ltd. 5.61
Bajaj Finserv Ltd. 2.58
HDFC Life Insurance Company Ltd. 2.00
SBI Life Insurance Company Ltd. 1.90
In the Case of any New Fund Offer, we donot know how the portfolio will be created by the fund managers. So to estimate the performance of this NFO, we have to look at the performance of the Index and also the funds managed by these fund managers.
So in this case, we randomly selected ABSL Nifty Small Cap Index Fund one of the funds managed by first fund Manager and it shows following performance:
Last one Month : 2.06 % ( Benchmark Return 2.87%) ( Unimpressive)
Last 3 Month : (-)20.09 % ( Benchmark Return (-) 14.42%) ( Unimpressive)
Last 12 Month : (-)23.44 % ( Benchmark Return (-) 4.91%) ( Unimpressive)
So ??? as compared to benchmark returns, the fund has provided unimpressive returns.
Lets check another Scheme, managed by second fund manager
ABSL Nifty 50 Index Fund
Last one Month : 1.46 % ( Benchmark Return 2.02 %) ( Unimpressive?)
Last 3 Month : (-)8.35 % ( Benchmark Return (-) 8.58%)
Last 12 Month : 1.19 % ( Benchmark Return 2.29%) ( Unimpressive?)
So ??? as compared to benchmark returns, above fund has also provided unimpressive returns during 2 time periods.
Conclusion : The past performance of the fund managers as seen in the randomly selected funds are not impressive. However the benchmark index has provided strong returns and hence we recommend you this NFO
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