NFO : Aditya Birla Sun Life to Launch BSE 500 Quality 50 Index Fund
By Shishta Dutta | Published at: Jun 19, 2025 04:00 PM IST
Mumbai, June 19, 2025 — Aditya Birla Sun Life Mutual Fund is getting ready to launch a new scheme called the Aditya Birla Sun Life BSE 500 Quality 50 Index Fund. The fund is set to allow investors to invest in 50 of India’s best-quality companies picked from the BSE 500 index.
The fund is suitable for people who want to grow their wealth over the long term by investing in reliable and financially strong companies. Since it’s an index fund, it follows a pre-decided list of companies and doesn’t actively pick or drop stocks. During the New Fund Offer (NFO), the price for each unit will be ₹10.
Aditya Birla Sun Life AMC Ltd hit an intraday high of ₹757.95 but eased to ₹743.40 by 2:07 PM on June 19, down 0.85% amid mild profit-booking.
Key Details of the Fund Offer
|
Feature |
What It Means |
|---|---|
|
NFO Opening Date |
Not announced yet |
|
NFO Closing Date |
Will stay open between 3 to 15 working days (as per SEBI rules) |
|
Reopens for Buying |
Within 5 business days after allotment |
|
Price per Unit |
₹10 during NFO |
|
Minimum Investment |
₹500, and then in multiples of ₹100 |
|
Exit Load |
0.10% if you withdraw within 15 days; No charge after that |
Where Will the Fund Invest?
The fund will invest mostly in stocks of 50 companies from the BSE 500 index that score well on quality. These are companies with:
-
Good profits,
-
Low debt,
-
Strong financial discipline.
It will not invest in overseas companies, real estate investment trusts, or risky debt instruments.
|
Type of Investment |
How Much Fund Will Go Here |
|---|---|
|
Stocks in BSE 500 Quality 50 Index |
95% to 100% |
|
Debt or Cash-like Instruments (for safety) |
0% to 5% |
What Makes This Index Special?
The BSE 500 Quality 50 Index includes 50 top-quality Indian companies selected based on:
-
Return on Equity (ROE) — how efficiently the company uses shareholder money,
-
Accruals — earnings quality (less manipulation),
-
Low Financial Leverage — less debt, more stability.
These companies are chosen from the larger BSE 500, but only the strongest performers make the cut.
Examples of Top Holdings in the Index:
|
Company |
Weight in Index |
|---|---|
|
Dixon Technologies |
4.48% |
|
Hindustan Aeronautics |
4.41% |
|
Britannia Industries |
4.32% |
|
Bharat Electronics |
4.05% |
|
Nestle India |
4.02% |
There are 50 such stocks in total, and the index is rebalanced every quarter to make sure only high-quality companies stay in the list.
What Are the Fees?
|
Type of Charge |
Amount/Limit |
|---|---|
|
Management & admin expenses (TER) |
Up to 1.00% per year (lower for Direct Plan) |
|
Extra expense for smaller cities (paused for now) |
Up to 0.30% |
|
Exit Load |
0.10% if you exit within 15 days |
No entry load (i.e., no fees to buy the fund).
Risks and Disclosures
-
Risk Level: Very High (because it’s 95–100% in equity)
-
NAV Disclosure: Daily by 11 PM on AMC & AMFI websites
-
Tracking Error: Fund will aim to match the index closely, with small differences updated daily/monthly
Payout Option (IDCW)
If the fund makes profits and the AMC decides to distribute them:
-
IDCW (Income Distribution) will be paid to investors,
-
Payment will be made within 7 working days from record date,
-
NAV will drop by the payout amount after the distribution.
Tax Rules (Summary)
|
Type of Income |
How It’s Taxed |
|---|---|
|
Profits on selling units |
12.5% (long term), 20% (short term) |
|
IDCW payouts |
10% TDS for residents, 20% TDS for NRIs |
You may also need to pay a 4% cess and surcharge depending on income bracket.
How to Buy and Sell
-
Buy during NFO at ₹10
-
Post NFO, buy/sell happens at market NAV (updated daily)
-
Minimum buy amount: ₹500
-
Withdrawals processed in 3 working days
-
Units can be held in both physical form or demat account
Outlook
The launch of the BSE 500 Quality 50 Index Fund signals Aditya Birla Sun Life AMC’s focus on disciplined, long-term equity strategies. This could potentially boost investor interest and reinforcing confidence in the stock amid market demand for quality-driven passive products. This new fund will help investors get smart exposure to quality stocks across sectors, ideal for those who want a low-cost, long-term investment plan based on well-defined rules.
About the AMC
Aditya Birla Sun Life AMC Ltd. is a trusted name in India’s mutual fund industry. It is jointly backed by the Aditya Birla Group and Sun Life Financial (Canada). The AMC offers a wide range of mutual fund products and has a strong reputation for professional fund management.
This new fund will help investors get smart exposure to quality stocks across sectors, ideal for those who want a low-cost, long-term investment plan based on well-defined rules.
REF: https://www.sebi.gov.in/filings/mutual-funds/jun-2025/aditya-birla-sun-life-bse-500-momentum-50-index-fund_94665.html
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