NFO It will be open for filling from 9th August 2024 to 23rd August 2024 NFO Provides opportunity to equip portfolio with Indian defense sector
Mumbai, 9 August, 2024: Aditya Birla Sun Life AMC Limited (ABSLAMC) was established in 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are promoters and major shareholders of the company. ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, registered under the Indian Trust Act, 1882.
Asset manager Aditya Birla Sun Life has announced the launch of Nifty India Defense Index Fund, an open-ended index fund that tracks the Nifty India Defense Index. The New Fund Offer (NFO) will be open from 9 August 2024 to 23 August 2024.
India's defense sector is undergoing a significant transformation due to the government's emphasis on self-reliance and modernization. Rs. With a defense budget of 6.22 lakh crore and an estimated CAGR of 15% in capital expenditure from FY24-30, India is increasing both military capabilities and economic resilience.
Aditya Birla Sun Life Nifty India Defense Index Fund offers investors an opportunity to participate in the momentum of this industry. Tracking the Nifty India Defense Index, the fund provides investments in a diverse range of companies contributing to the country's defense capabilities. These include players involved in manufacturing, aerospace, shipbuilding and defense electronics.
New fund launch on comment doing Aditya Birla Sun Life AMC of Ltd Managing Director And CEO A.Balasubramaniam told was K,“The government has significantly increased investment in the defense sector to meet domestic needs, as well as reduce dependence on imports and manufacturing for growing global demand. The focus is on resilience and expansion of counter capabilities of the country's defense system. This sector involves high barriers to entry due to its capital intensive nature and continuous development of product types. Given the low costs, there is significant market growth opportunity and companies in this sector are likely to capture higher market share as demand increases.”
The fund offers diversification to long-term investors through index-based investing, as well as attracts those looking to equip their portfolios with India's defense sector with a growing order book and government policy.
While policy volatility is expected to stabilize post-Budget, strong sales and margin growth are driving estimates, supported by revised analysts' ratings that reflect competition around it. Ongoing government capital expansion, supportive procurement policies and increasing export demand due to geopolitical factors are supporting the sector's conditions.
About Aditya Birla Sun Life AMC Limited Aditya Birla Sun Life AMC Limited (ABSLAMC) was incorporated in the year 1994. Aditya Birla Capital Limited and Sun Life (India) AMC Investments Inc. are the promoters and major shareholders of the Company.
