ABSLAMC launches industry’s first BSE Total Market Index Fund, NFO opens September 30

Aditya Birla Sun Life AMC (ABSLAMC) has brought to market the first BSE Total Market Index Fund and a related ETF, opening the NFO window for subscription from September 30 to October 14, 2026. This fund aims to capture approximately 93% of India's total market capitalisation across all market cap segments, consisting of large, mid, small and micro-cap stocks.

The index comprises 1,000 or more constituent stocks with no upper cap, designed to grow as more companies list on Indian exchanges. Currently, the fund's allocation is 56% large-cap, 20% mid-cap, 10% small-cap, and 7% micro-cap, covering 22 sectors. The fund rebalances semi-annually in June and December, based on free-float adjusted market capitalisation.

ABSLAMC's Managing Director and CEO, A. Balasubramanian, emphasized that the fund eliminates the need for investors to choose a portion of the market when they can participate in the entire market. Historical data suggests the BSE Total Market Index has outperformed both the BSE 500 and the Sensex over the long term. Hemen Bhatia, Head of Passives at ABSLAMC, highlighted the fund's design, which aims to maintain a 'Total' market coverage as India's equity market expands.

ABSLAMC manages a total asset under management (AUM) of ₹6,279 billion as of June 30, 2026. The company has established a dedicated passives team to support this new product. Passive funds in India have grown significantly, from ₹1.6 lakh crore to ₹15.5 lakh crore over the past six years, with passive investors now comprising about 19% of total mutual fund folios.