Aditya Birla Sun Life Insurance Nifty Alpha 50 Index Fund

Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund is an open-ended New Fund Offering (NFO) by Aditya Birla Sun Life Insurance which is launching from 16th - 30th June 2024. The ABSLI Nifty Alpha 50 Fund invests in the top 50 stocks that consistently outperform the market.

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What is Aditya Birla Sun Life Insurance Nifty Alpha 50 Index Fund?

Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund is a market-linked investment fund that replicates the performance of Nifty Alpha 50 index. 

The ABSLI Alpha 50 NFO is launching on 16 June 2024 and is available up to 30 June 2024. As an index fund, it typically follows a passive investment strategy, meaning it aims to replicate the performance of its underlying index rather than actively selecting stocks.

  • The ABSLI Nifty Alpha 50 Fund includes stocks from the top 300 companies in terms of market capitalization.

    • 1st – 100th: Large Cap

    • 101st – 250th: Mid Cap

    • 251st onwards: Small Cap

  • Stocks are selected in the Nifty Alpha 50 Index based on their Alpha scores, with the top 50 scoring stocks chosen.

    • During Bull Runs: Emphasizes midcap and small cap stocks.

    • During Bear Runs: Shifts focus to large cap stocks.

Highlights of Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund

Particulars Details
Investment Objective The ABSLI Nifty Alpha 50 Fund invests in the top 50 stocks that consistently outperform the market or benchmark indices. It aims to exit investments promptly when returns start to decrease.
Benchmark Index NIFTY Alpha 50 Index
Benchmark Index Returns 10-Year Returns: 26.80% p.a.
5-Year Returns: 30.40% p.a.
Risk Profile High
NFO Launch Date 16 June 2024 
NFO Duration 16-30th June 2024
Current NAV Rs. 10 
Minimum Investment Rs. 2,000 per month (with ABSLI Wealth Smart Plus Plan)

investment plans for nrisabsli-index-fund

Reasons Why You Should Invest in ABSLI Nifty Alpha 50 Index Fund

  • Outstanding Performance: ABSLI Nifty Alpha 50 Fund boasts a 10-year return of 26.8%, indicating high return potential.

  • Top Company Selection: Invests in the top 50 companies from 300 large-cap, mid-cap, and smallcap stocks, ensuring a diversified portfolio.

  • Zero-Cost Products: Enjoy zero-cost investments with Wealth Smart Plus and Capital Guarantee Plans, making it a cost-effective investment option.

  • Wealth Smart Plus ULIP: This is a newly launched ULIP plan with a minimum premium of Rs. 2,000, making it accessible to many investors.

Plan Name Savings Child Plans Retirement
Capital Guarantee Solutions Starts at Rs. 2,300 Starts at Rs. 2,400 Starts at Rs. 2,800
Unit Linked Insurance Plan (ULIP) ABSLI Wealth Smart Plus Plan
- Starts at Rs. 2,000
ABSLI Wealth Smart Plus Plan + Waiver of Premium (WOP) Rider   -Starts at Rs. 2,000 ABSLI Wealth Smart Plus – Whole Life Plan -Starts at Rs. 2,000
  • Comprehensive Coverage: The ABSLI Nifty Alpha NFO offers Capital Guarantee Solutions for Savings, Child (with WOP), and Retirement categories. The Capital Guarantee Solutions start at Rs. 2,400.

  • Special NFO Opportunity: From 16th to 30th June, you can take advantage of the NFO to get units at an attractive Rs. 10 NAV, with the issuance date set for 30 June.

What is Alpha?

Alpha represents the excess return of an investment compared to a benchmark, typically a market index.

  • Formula: Alpha is calculated as the difference between the actual return of a stock or portfolio and its expected return based on its risk profile and market performance.

Alpha = Actual Return – Expected Return

Interpretation of Alpha

  • Positive Alpha

    • Meaning: Indicates that the investment has outperformed the market average.

    • Example: Stock A with a 9% return when the market returned 8%.

  • Negative Alpha

    • Meaning: Indicates that the investment has underperformed relative to the market average.

    • Example: Stock B with a 5% return when the market returned 10%.

What is the Nifty Alpha 50 Index?

The Nifty Alpha 50 Index is a stock market index designed to track the performance of 50 Indian companies that have exhibited high alpha over the past year.

  • Focus on Alpha: It targets companies with high alpha, which is a measure of performance that goes beyond just stock price movement by comparing returns to a benchmark like the Nifty 50.

  • Well-Diversified: The index consists of 50 stocks, offering diversification across different sectors.

  • Selection Criteria: While alpha is a primary factor for inclusion, the index also considers factors like liquidity and market capitalization to ensure the investability of the chosen stocks.

Time Period Return Percentage
5 Years 30.4%
10 Years 26.8%

If you had invested Rs. 100 ten years ago, it would now be worth Rs. 985, showing a tenfold increase.

How Does the Nifty Alpha 50 Index Work?

  • Selection Based on Alpha Score: Companies in the Nifty Alpha 50 index are chosen based on their alpha score, reflecting recent market outperformance.

  • Weightage Determination: Each company's weightage in the index is determined by its alpha score calculated from the past 12 months price data.

  • Allocation Strategy: Funds allocated to the index are proportionally distributed according to each stock's alpha score, emphasizing stronger performers and reducing exposure to weaker ones.

  • Flexibility Across Market Caps: The index maintains flexibility across different market capitalizations, adjusting allocations dynamically based on market conditions.

  • Rebalancing Frequency: The Nifty Alpha 50 index rebalances quarterly to swiftly adapt to market movements, contrasting with other indices that rebalance semi-annually.

Sector Representation of the Nifty Alpha 50 Index

Top Sectors Weightage of Invested Assets
Financial Services 28.00%
Capital Goods  18.59%
Power 7.94%
Healthcare 6.78%
Realty 6.69%
Construction  6.65%
Information Technology  5.31%
Consumer Services 5.92%
Metals & Mining 4.05%
Automobile and Auto Components  3.60%
Fast Moving Consumer Goods 1.62%
Textiles  0.62%
Media, Entertainment & Publication  0.49%

[Source: nseindia.com]
*updated as of 13 June 2024.

Companies of Nifty Alpha 50 Index

absli-nifty-alpha-50-fundindustry-brand

Performance of Nifty Alpha 50 Index

Index Name  3-Year Returns 5-Year Returns 10-Year Returns
NIFTY Alpha 50  26.50% 30.40% 26.80%
NIFTY Midcap 150  26.30% 26.60% 19.90%
NIFTY Smallcap 250 25.70% 25.90% 16.80%
NIFTY Smallcap 250 Quality 50 26.10% 26.90% 21.70%
NIFTY 50 15.30% 15.80% 13.20%

[Source: nseindia.com]

Why to Invest in Aditya Birla Sun Life Insurance (ABSLI) Investment Plans?

  • 150+ years of expertise from Sun Life and 160+ years from Aditya Birla Group.

  • ABSLI is promoted by Aditya Birla Capital (part of the US$65 billion Aditya Birla Group) and Sun Life Financial (established in 1865, serving 85 million customers in 28 countries).

  • 47,000 employees and AUM of 4.1 Lac Cr, supported by 200,000 agents and partners.

  • 19.5 lakh active customers and AUM of 86,161 Cr as of 31 March 2024.

  • Over 360 branches across India.

How to Buy ABSLI Nifty Alpha 50 Index Fund?

  • Step 1- Fill out your name and contact number to start the process.

  • Step 2- Explore available plans by clicking "View Plans."

  • Step 3- Login and provide your city, age, and annual income for personalized benefits assessment.

  • Step 4- Select the Aditya Birla Sun Life Nifty Alpha 50 Fund NFO from the options presented.

  • Step 5- Review the details, proceed to payment, and complete the KYC requirements for regulatory purposes.

What are the Benefits of Purchasing the ABSLI Nifty Alpha 50 Fund from Policybazaar?

  • Easy Online Investing: Invest in ABSLI Nifty Alpha 50 NFO online via Policybazaar, eliminating physical visits to banks or agents.

  • Informed Decision-Making: Compare various plans, including new funds, on Policybazaar to secure the best deal with all necessary information.

  • Expert Guidance: Receive tailored advice from Policybazaar's financial experts to choose the right NFO plan based on your goals.

  • Tax Advantages: Explore potential tax benefits under Section 80C and Section 10(10D) by investing through Policybazaar, optimizing your financial strategy.

Frequently Asked Questions

  • Under which plan can we avail of the benefits of Aditya Birla Sun Life Insurance Nifty Alpha 50 Index Fund?

    You can avail of the benefits of the Aditya Birla Sun Life Insurance Nifty Alpha 50 Index Fund under the following investment plans:
    • ABSLI Wealth Smart Plus Plan

    • ABSLI Capital Guarantee Solutions – Growth

    • ABSLI Capital Guarantee Solutions – Child Waiver of Premium (WOP) Plan

    • ABSLI Capital Guarantee Solutions – Retirement Plan

    • ABSLI Wealth Smart Plus + Waiver of Premium (WOP) Child Plan

    • ABSLI Wealth Smart Plus + Whole Life Retirement Plan

  • Is it good to invest in the ABSLI Nifty Alpha 50?

    Yes, investing in the ABSLI Nifty Alpha 50 Index Fund can be beneficial due to its historical performance and strategy of investing in stocks that consistently outperform the market.
  • Who should invest in the ABSLI Nifty Alpha 50 Index Fund?

    The ABSLI Nifty Alpha 50 Index Fund is suitable for investors looking for high returns by investing in top-performing stocks across large, mid, and small cap segments. It is ideal for investors with a moderate to high-risk appetite seeking diversification and potential for growth.
  • How does the Aditya Birla Sun Life Nifty Alpha 50 Index Fund benchmark its performance?

    The Aditya Birla Sun Life Nifty Alpha 50 Index Fund benchmarks its performance against the Nifty Alpha 50 Index, which consists of 50 Indian companies selected based on their alpha scores.
  • What are the tax implications under the Aditya Birla Sun Life Insurance Nifty Alpha 50 Index Fund?

    Tax implications include long-term capital gains tax, which is taxed at 10% without indexation benefit.
  • What are the differences and similarities between the Aditya Birla Sun Life Nifty 50 Index Fund and Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund?

    Both funds are index funds managed by Aditya Birla Sun Life, but they differ in their benchmarks and strategies. The Nifty 50 Index Fund tracks the top 50 large-cap stocks, while the Nifty Alpha 50 Fund focuses on 50 stocks across large, mid, and small caps that demonstrate high alpha.
  • What is the NAV of Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund NFO?

    The NAV of the Aditya Birla Sun Life Insurance Nifty Alpha 50 Fund is Rs. 10 per unit during the NFO period between 16-30th June 2024.
  • How safe is Aditya Birla Sun Life Mutual Funds?

    Aditya Birla Sun Life Mutual Funds are managed by Aditya Birla Sun Life Asset Management Company, a joint venture between Aditya Birla Group and Sun Life Financial Inc. With their long-standing reputation and management expertise, they are considered relatively safe, but like all mutual funds, they are subject to market risks.

*Past 5 Year annualised returns as on 01-07-2024
*All savings plans are provided by the insurer as per the IRDAI approved insurance plan. Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.

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Fund Reviews & Ratings
4.6 / 5 (Based on 28 Reviews)
(Showing Newest 10 reviews)
Sandhya
Mumbai, June 30, 2024
Policybazaar Helpful
I bought this fund to grow my money for the long term. Policybazaar helped me understand the NFO process.
Shalini
Mangaluru, June 30, 2024
Expecting High Returns
Im happy because this fund might give me more money back than other ones. Policybazaars help with the ABSLI NFO was great.
Latha
Vijayawada, June 29, 2024
Hassle Free Investment Experience
Diversification and growth potential exactly what I wanted. Policybazaar offered a hassle free investment experience.
Anjali
Visakhapatnam, June 29, 2024
Best Investment Choice
Happy with the proven track record of the Nifty Alpha fifty Index. Policybazaar made the investment process smooth.
Deepak
Agra, June 28, 2024
Great Experience with ABSLI Nifty Alpha
Great experience with ABSLI Nifty Alpha fifty Index Fund NFO on Policybazaar. Quick and efficient service.
Kartik
Visakhapatnam, June 28, 2024
Clear Information Provision
Policybazaar provided clear information about AB Sun Life Nifty Alpha fifty. Very satisfied.
Arjun
Bengaluru, June 26, 2024
Simplified Search
Policybazaar simplified my search for Aditya Birla Nifty Alpha fifty fund NFO. Excellent service
Ganesh
New Delhi, June 26, 2024
Seamless Process for ABSLI NFO
AB Sun Life Nifty Alpha fifty is a great choice. Policybazaar made the process seamless.
Satish
Surat, June 24, 2024
Excellent Service
Policybazaars service was excellent for ABSLI Nifty Alpha fifty index fund. Highly recommend.
Mohan
Agra, June 24, 2024
Transparent Fees and Options
Transparent fees and options. Policybazaar made it easy to buy Aditya Birla Sun Life Nifty Alpha fifty fund.
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