Aditya Birla Sun Life AMC launches India's first BSE Total Market Index Fund, ETF
The new fund offering will start on September 30 and end on October 14
Aditya Birla Sun Life AMC has introduced India's inaugural BSE Total Market Index Fund and ETF on Tuesday. These new investment offerings, set to commence on September 30 and conclude on October 14, will mirror the BSE Total Market Index, granting investors access to roughly 93% of India's total market capitalization spread across large-, mid-, small- and micro-cap sectors.
The BSE Total Market Index, a key component of these offerings, encompasses stocks representing 98% of the market capitalization of the BSE AllCap Index, with a minimum of 1,000 stocks and no upper limit on constituents. This design allows for exposure to a vast array of companies through a single investment vehicle, as per Hemen Bhatia, head of passives at Aditya Birla Sun Life AMC.
Unlike conventional indices with fixed stock counts, the BSE Total Market Index is designed to grow in tandem with India's dynamic capital markets, undergoing rebalancing twice a year in June and December. The index's constituent weights are determined by free-float-adjusted market capitalization. With 56% allocation to large-cap stocks, 20% to mid-cap, 10% to small-cap, and 7% to micro-cap, the BSE Total Market Index spans 22 sectors, including financial services, capital goods, healthcare, automobiles, oil & gas, information technology, FMCG, consumer services, metals & mining, telecommunications, and power.
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