Aditya Birla Sun Life MF Launches Thematic Fund betting on leading Indian Conglomerate
Aditya Birla Sun Life Mutual Fund has introduced its newest offering, namely, Aditya Birla Sun Life Conglomerate Fund, which is an open-ended, diversified equity scheme that goes by a theme. It is considered to be the first and foremost active fund in the country specifically designed to have its focus only on investment into top-notch conglomerates.
The New Fund Offer (NFO) is open for subscription from December 5 to December 19, 2024. The fund targets businesses owned by large groups with a proven track record of navigating various market cycles. Conglomerates are often described as vast, multi-generational enterprises that have significant sway over the lives of millions and are considered resilient and adaptable organizations.
The fund will focus on groups headquartered in India, featuring at least two listed companies across different sectors. Companies selected for investment will have diversified operations across multiple industries, strong market positions, and sustainable cash flow generation capabilities.
The approach focuses on the role of conglomerates in adapting to market dynamics and strategically venturing into emerging, high-growth industries often termed sunrise sectors. This adaptability enables these entities to remain relevant while influencing global business trends and consumer behaviour.
The Aditya Birla Sun Life Conglomerate Fund will offer access to the wide range of opportunities offered by 169 companies across 22 sectors, which is 33% of the market capitalization of the BSE. It will also include 36 large-cap, 30 mid-cap, and 103 small-cap stocks that can help in offering growth and sectoral diversification.
It will be benchmarked against the BSE Select Business Groups Index Total Return Index. The fund managers would be Kunal Sangoi and Harish Krishnan. The seven business groups focused on the benchmark are Tata Group, Reliance Industries, Adani Group, Aditya Birla Group, Larsen and Turbo, Jindal Group, and Mahindra Group, while the universe of the fund expands to more than 30 business groups focusing on mid-cap and small-cap companies.
This thematic fund puts forward the very strong role Indian conglomerates are playing in spearheading economic development, endurance, and innovation in industries such as green energy and digital ecosystems. The portfolio will look for long-term value from the best multi-sector companies in India to offer unique exposure to growth stories of influential groups to investors.
