Aditya Birla Sun Life AMC launches ABSL Nifty IT ETF

File image of A Balasubramanian

Aditya Birla Sun Life (ABSL) AMC Ltd on October 20 announced the launch of ABSL Nifty ETF, an open-ended exchange traded fund that will track the Nifty IT TRI (total return index).

The new fund offer (NFO) opens for subscription on October 20 and closes on October 28, 2021, it said, adding that the minimum application amount for this fund is Rs 500 and in multiples of Rs 100 thereafter, during the NFO.

ABSL AMC's MD and CEO A Balasubramanian, while commenting on the launch, said, "With India being on track to become a Global Hub of IT, Aditya Birla Sun Life IT ETF gives investors an opportunity to tap into the growth potential of the top IT companies."

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"India has established itself as a preferred destination for IT & Business Process Management services, with the sector contributing almost 44 percent of FDI inflows in India in 2021. It is estimated that the Indian IT sector has the potential of becoming a $350 billion industry in annual revenues by 2025 as per a report by Nasscom," Balasubramanian added.

Notably, the Nifty IT index is computed using free-float market capitalization method with a base date of January 1, 1996. This index acts as a benchmark for the performance of the Indian IT sector and comprises 10 marquee IT companies listed on the National Stock Exchange.