The Aditya Birla Sun Life Nifty 50 Index Fund is a mutual fund that tracks the Nifty 50 Index. Here’s a brief overview:
1. Fund Overview:
- Fund Type: Open-ended index fund.
- Benchmark: Nifty 50 TRI (Total Return Index).
- Expense Ratio: Low, typically in the range of 0.2%–0.5% for direct plans.
2. Performance Analysis:
| Time Period | Fund Returns | Nifty 50 TRI Returns |
| 1 Year | ~13-15% | ~13-15% |
| 3 Years (Annualized) | ~12-14% | ~12-14% |
| 5 Years (Annualized) | ~10-12% | ~10-12% |
- The fund closely matches the benchmark performance, as it is passively managed.
- Tracking Error: Low, ensuring returns align closely with the index.
3. Strengths:
(1) Diversified Exposure:
- Invests in India’s top 50 companies across various sectors like financials, IT, energy, and FMCG.
(2) Cost Efficiency:
- A lower expense ratio compared to actively managed equity funds.
(3) Transparency:
- Fund holdings mirror the Nifty 50 Index, making it easy to track.
(4) Long-Term Potential:
- Suitable for long-term wealth creation by tapping into the growth of blue-chip companies.
(5) Low Maintenance:
- No active management means fewer portfolio churns and lower transaction costs.
4. Limitations:
(1) Market Risk:
- Since it tracks the Nifty 50 Index, the fund’s performance is directly influenced by market volatility.
(2) No Active Outperformance:
- Being a passive fund, it will not outperform the index even during favorable market conditions.
(3) Limited Customization:
- The portfolio composition cannot be altered as it mirrors the index.
5. Comparison with Actively Managed Funds:
- Expense Ratio: Lower than actively managed funds.
- Performance Consistency: Matches the index, unlike actively managed funds that may outperform or underperform.
- Suitability: Best for investors who prefer passive investing with steady returns linked to the market.
6. Suitability:
- Ideal for long-term investors seeking cost-effective exposure to large-cap companies.
- Suitable for first-time investors or those who want to align their portfolio with market performance.
Aditya birla sun life nifty 50 index fund returns
The Aditya Birla Sun Life Nifty 50 Index Fund is a mutual fund that aims to replicate the performance of the Nifty 50 Index by investing in the same companies in similar proportions.
Performance Overview:
- 1 Year: Approximately 11.47%
- 5 Years: Approximately 14.93%
- Since Inception: Approximately 10.97%
Net Asset Value (NAV):
- As of December 27, 2024, the NAV for the Direct Growth Plan is ₹244.36.
Expense Ratio:
- The fund has a low expense ratio, typically ranging from 0.2% to 0.5% for direct plans, making it cost-effective for investors.
Investment Objective:
- The fund seeks to generate returns commensurate with the Nifty 50 Index, subject to tracking errors, through investments in companies included in the Nifty 50 and in money market instruments and cash.
Risk Level:
- The fund is rated as having a “Very High” risk level, indicating that it is suitable for investors with a high risk tolerance seeking exposure to large-cap equities.
Minimum Investment:
- Lump Sum: ₹100
- SIP (Systematic Investment Plan): ₹100
Considerations:
- Market Risk: The fund’s performance is directly linked to the Nifty 50 Index and is subject to market volatility.
- Tracking Error: While the fund aims to replicate the index, slight deviations may occur.
- Investment Horizon: Suitable for investors with a long-term perspective seeking exposure to large-cap companies.
| Time Period | Fund Returns (Annualized) | Benchmark (Nifty 50 TRI) |
| 1 Year | ~11.5% | ~12% |
| 3 Year | ~16.2% | ~16.5% |
| 5 Year | ~12.1% | ~12.3% |
| Since Inception | ~10.9% | ~11% |
Explanation:
- Fund Returns: The returns generated by the fund over specific time periods.
- Benchmark Returns: The Nifty 50 TRI (Total Return Index) returns for comparison.
- Tracking Error: Minor deviations in fund returns compared to the benchmark due to management costs and other factors.
Key Details:
- Expense Ratio: Low, around 0.2%–0.5% for direct plans.
- Risk: Classified as Very High, given its exposure to equity markets.
- Minimum Investment:
- Lump Sum: ₹100
- SIP: ₹100
Growth
The Aditya Birla Sun Life Nifty 50 Index Fund – Growth Plan is a mutual fund that aims to replicate the performance of the Nifty 50 Index by investing in the same companies in similar proportions.
Performance Overview:
| Time Period | Fund Returns (Annualized) | Benchmark Returns (Nifty 50 TRI) |
| 1 Year | 11.47% | 12.00% |
| 5 Years | 14.93% | 15.20% |
| 5 Years | 10.97% | 11.30% |
Key Details:
- Net Asset Value (NAV): ₹244.36 (as of December 27, 2024).
- Expense Ratio: 0.20% for the direct plan.
- Exit Load: Nil.Risk Level: Very High.
Portfolio Composition:
- Equity Allocation: 99.76% in domestic equities.
- Large Cap Stocks: 78.36%.
- Mid Cap Stocks: 4.92%.
- Small Cap Stocks: 16.48%.
Considerations:
- Market Risk: The fund’s performance is directly linked to the Nifty 50 Index and is subject to market volatility.
- Tracking Error: While the fund aims to replicate the index, slight deviations may occur.
- Investment Horizon: Suitable for investors with a long-term perspective seeking exposure to large-cap companies.
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